Alibaba Stock Is Facing Serious Threats

alibaba stocks
Alibaba Stock Is Facing Serious Threats

Alibaba Group Holding Limited, aka Alibaba, is a very famous Chinese technology company. It is a multinational company that specializes in retail, technology, retail, e-commerce, etc. It was founded in Hangzhou on June 28, 1999. The company provides full-fledged C2C, B2C, and B2B services, such as electronic payments, shopping search engines, web portals, and cloud computing services.

In the year 2014, Alibaba started its initial public offering. This gave the company a market value of $231 billion. This is considered the most valuable enterprise in the history of Initial Public Offering. It maintained 31st position in the list of Forbes Global 2000. In the year 2018, Alibaba was the second company that broke the $500 billion valuation mark. The first one was Tencent.

Jack Ma, with 17 other students, founded the Alibaba corporation. He named the company Alibaba by getting inspired by the character Ali Baba from the collection of folk tales known as One Thousand and One Nights. Everybody knows this character as it is very famous. Jack Ma did a smart move by naming his company Alibaba. Everyone remembered its name.

Alibaba comes on the list of the largest retailers and e-commerce companies. In the year 2020, it came at the fifth position in the genre of artificial intelligence. It is also considered the biggest enterprise and investment firm in the world. It had also broken the record of the biggest online and offline shopping day in the year 2018 when China was celebrating the singles day.

Alibaba Stock Facing Threats

Alibaba shares took a long fall when US regulators added Alibaba to the list of Chinese enterprises which might get kicked off. This giant-tech had a great fall to 6% on Monday in Hong Kong. It then incurs losses of 3.8%. SEBI, Securities and Exchange Commission also put the company on Watch-list.

alibaba stocks
Alibaba Stock Is Facing Serious Threats

Investors have been so worried about this company because, in the year 2020, the company had very slow growth. Their revenues have been decreasing for many years.

China had already rejected three audit firms as it is seen as a very serious safety concern. With the help of many business analysts, Alibaba had made it to the primary listing in Hong Kong.

Alibaba had started great from its very foundation. There is a possibility that it might get uplifted after this primary listing. For now on, Alibaba is on a watch list of SEC with other companies such as Didi, JD.com, Yum China Holdings, etc.

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