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Alibaba Downfall: The Falling E-commerce Giant

World’s largest E-commerce giant ‘Alibaba.com’ which is situated at Hangzhou – China, has been seen to acquire quite a fall this year.

Expectations do always hurt, now talking about the world’s biggest e-commerce company Alibaba.com lately it has been the talk of the town for investing in social network ‘Snapchat’ which would eventually help the Chinese online retailers to have more exposure worldwide.

But talking about the Alibaba’s growth position is totally a different scenario. Namely Banks are letting the e-commerce giant down by having slashed expectations.

From the past months major banks (Credit Suisse, Deutsche Bank) have decreased the estimations of the revenue generation for Alibaba which also includes (Barclays).

Barclays reduced the stock price of Alibaba to $100 from $107, Deutsche Bank and Credit Suisse also reduced the prices from $105.10 to $98, Majorly Swiss bank anticipated the giant to be decreasing to 2 and 7.1 percent for the year 2015 and 2016 correspondingly based on earnings.

“CEO Jack Ma has come under fire in recent months for permitting fake goods to be sold on Alibaba websites as well as failing to crack down on vendors for falsifying sales volumes.” (Source: http://www.cnbc.com/id/102510309)

This event happening has been a very devastating news for the stock! As Alibaba’s stock has been diminished near to 20 percent with current prices displayed at the rate of $84 in comparison with the all time highest prices of $120 in November, the news is indeed devastating.

In an effort to settle down with the situation selling anxiety has been predicted after Today which will eventually point the end of Alibaba’s lockup period.

Lockup situation means the limit to keep the insiders from selling the stock for 180 days after the public opening for offers.

Note: It has been roughly estimated that there are 437 Million Shares! With 18% outstanding shares that would eventually become adequate for sale. Puts Alibaba in Danger!

Marketing Evangelist, Dreamer, Idea Artist, Aspiring Entrepreneur, and Educationist at Heart these are some of attributes that best define myself. I love to read about technology, entrepreneurship, and autobiographies. Owing to the content creation specialty posses the natural flare for creative and academic writing. Right now head of a wonderful team at Phonebook Online.

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Alibaba Downfall: The Falling E-commerce Giant

World’s largest E-commerce giant ‘Alibaba.com’ which is situated at Hangzhou – China, has been seen to acquire quite a fall this year. Expectations do always hurt, now talki...