Shares of Alibaba hit a record low in New York Wednesday after the Chinese e-commerce company reported the slowest revenue growth in three years. Bobbi Rebell reports.
A crushing earnings report from Chinese e-commerce giant Alibaba, further chipping away at what had been a momentous debut in the public markets. Alibaba missed revenue growth targets, sales of goods on its websites dropping to the slowest growth rate in more than three years at 34 percent. That doesn't sound awful, but that compares with Alibaba's smaller rival JD.com's whose growth rate is 82 percent. Wedbush Securities' Gil Luria SOUNDBITE: GIL LURIA, MANAGING DIRECTOR, WEDBUSH SECURITIES (ENGLISH) SAYING: "Alibaba has such large market share that a lot of the incremental growth is actually going to other e-commerce companies in China, such as JD, VIPshop, Jumei, etc., and they are growing even faster than Alibaba." Adding to the challenges: China's economy is expected to see its slowest growth this year in a quarter of century. The latest strategy to give sales a jolt - branching out from it's core online-only shopping platforms. Earlier in the week, Alibaba announced a $4.6 billion investment in Chinese electronics retailer Suning Commerce Group. The earnings results were more bad news for investors. Shares of Alibaba are down nearly a third since the start of this year. As a result, Alibaba announced a $4 billion share buyback over two years, to offset the impact of the company's share-based compensation programs and other factors that could dilute the share price.