This archive report was first published on 25 May 2020.
Published on May 25, 2020, Alibaba's stock price took a hit in Hong Kong trading, dipping 4% after the company projected slower revenue growth.
The e-commerce giant's forecast for 2020 sales growth of 27.5% is a significant drop from last year's 35%, attributed to economic uncertainties caused by the pandemic.
Alibaba's stock price also suffered a 6% drop on the New York Stock Exchange.
While China is making progress in its recovery from the pandemic, it may take time for Alibaba to fully recover its sales.
According to Bloomberg, Alibaba saw a comeback in online shopping in March, but sales have yet to pick up for high-price items.
Alibaba has lost over $70 billion since the pandemic began.
As the e-commerce landscape continues to evolve, Alibaba faces growing competition and potential disruptions from Sino-American tensions.
The US Senate recently passed a bill requiring foreign companies to follow American audit standards, which could prevent Chinese firms from listing on American stock exchanges.
Beijing is responding by vetting applications from Chinese companies to list on the London Stock Exchange, a move seen as a gesture to further open up China's capital markets.
“Allowing Chinese companies to sell shares in London can be viewed as a gesture by China, further opening up its capital markets,” said Investment Manager Wu Kan in a quote to Forbes.
