Alibaba's Market Cap Has More Than Halved Since Ant IPO Debacle

Alibaba Group Holding Ltd (NYSE:BABA) has lost over half its market value in the year since China postponed its finance arm Ant Group's IPO, Nikkei Asia reports. Alibaba's market capitalization slumped to $361 billion from the highs of $846 billion in October 2020.

• Ant Group's valuation sunk from over $300 billion a year back to $200 billion.
• The management revenue projections reflected the core e-commerce business weakness and seemed intended to head off further damage to Alibaba's stock price after an already rough year.
• Related Content: Jack Ma's Ant IPO Unlikely To Happen Before 2022 Over New Regulatory Hurdles: Report
• JD.com Inc (NASDAQ:JD) has already started to capitalize on Alibaba's weakness, further worsened by the antitrust violations by the latter.
• Additionally, China's leading online retailer Pinduoduo Inc (NASDAQ:PDD) and TikTok parent ByteDance have forayed into mobile payment services, adding to Alibaba's woes.
• Another potential deadfall involves live streaming influencers who promote products from Alibaba's online marketplace. Livestreaming is lucrative both for influencers and for Alibaba.
• However, long-standing tax-related practices in the industry are drawing regulatory scrutiny with possible tax evasion allegations.
• Chinese President Xi Jinping's "common prosperity" push could lead to a more challenging regulatory environment for Alibaba, which faced flak for excessive profits.
• Price Action: BABA shares traded lower by 1% at $13..30 in the premarket session on the last check Tuesday.