United States shareholder welcomed the year with positive attitude. After the 2008 housing bust, the economy shuffles towards a full recovery mode. American stocks are considered to be the best source to generate wealth for shareholders. However, it’s not true in the case of Alibaba Group Holding Ltd for a time being.
Alibaba Group has been welcomed by a lot of troubles, with its shares plunging by nearly 15% this year. The e-commerce giant company’s miseries started as Chinese regulator State Administration for industry & Commerce (SAIC) issued a white paper accusing the company for carelessness towards it fake sales. Alibaba’s ordinary revenue growth has worsened the situation for the company.
However, another lawsuit was filed against Alibaba by Robbins Geller Rudman & Dowd LLP Law firm. The Law firm accused that the company obscured significant regulatory inspection and deceived public before its IPO last year.
In the start of this week, Alibaba Group faced another class case filed by Wolf Popper LLP. They claimed that Alibaba Group dishonored Security Exchange Act Sections 10(b) and 20(a), by deceiving investors about the company’s response to tackle the fake goods sales at its marketplace.
Executive Chairman, Jack Ma, however pursues to calm its employees on the subject of lawsuits flung at the firm. Jack Ma said in his annual letter to his employees before Chinese New Year, “As for the lawsuits company faced from some latest events, I ask Alibaba employees to be at comfort. The Group will attribute high importance to the matter, and we will sustain the principles of objectivity, transparency and honesty to tackle the problem.”
According to Reuters, a Chinese antitrust watchdog is planning to investigate the pricing strategies of China’s e-commerce companies like Alibaba and JD.Com Inc. This effort is the part to ensure a “fair” market and will help in increasing online retailer’s scrutiny.
Alibaba shares have declined by 4% following by a white paper issued by SAIC, which was later withdrawn. Alibaba spokesperson said, “We are continuously monitoring the lawsuits. The company has always been crystal clear in its daily business operations and corporate governance, and always tries its best to safeguard the interest of each shareholder. Alibaba will strongly guard itself and its business practices”.
Alibaba Group Holdings(NYSE:BABA)stock is down by 0.05%, with share price of $86.70 during per-market trading as of 08:42 AM on Wednesday February 18th, with 30-days average volume of 17.78 million shares. The Chinese multi-national company has a 52-week low of $82.81, and a 52-week high of $120.00, with market cap of $215.75 billion and price to earnings ratio of 48.18.
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