The shares of the biggest Chinese online retailer Alibaba fell 11% on the Stock Exchange of Hong Kong, Report informs.
This is the largest decline in Alibaba’s share price since its listing on the exchange in November 2019. The plunge in share prices pushed Alibaba’s market capitalization down by $40 billion to $390 billion.
The record drop in Alibaba shares was triggered by the release of its third-quarter earnings, which disappointed investors. Despite an increase in revenue by 29% (to $31.1 billion), the company’s net profit decreased by 87%, to $524 million.
The company also said it expects revenue growth of 20-23% for the year, which was below analysts’ forecasts of 28% growth.
This fall in Alibaba shares affected the entire Hang Seng Index of the Stock Exchange of Hong Kong, which after the publication of reporting fell by 2%, Kommersant reports.