AllChinaTech exposes Alibaba’s fake $14B Single’s Day sales success
Alibaba performed insanely well during its Singles Day shopping festival on November 11th bringing in RMB 92.1 billion (USD 14 billion) in sales revenue. Despite this, Alibaba’s stock price dropped from 81.43 on November 10th to 75.85 on November 15th.
Why didn’t remarkable sales performance equate with a boost in stock price? AllChinaTech offers some quick answers.
I. Stock price reflects expectations for a company, not necessarily past performance.
The past few years have seen Alibaba experience strong growth, but the company is in need of something exciting to prove it can continue the momentum. It was reported last Friday, leading hedge fund manager, James Chanos, suggested shorting Alibaba stock and pitching long on competitor JD.com at a Morgan Stanley conference. Al...