This is a considerable turn for a stock that hit a record high in 2018 and reached a stock price of $211.70 a few months ago.
At present, Alibaba's share price has fallen by 30% from an all-time high of $211.70. Since the beginning of this year, the company's share price has fallen by 19% from the beginning of the year at $183.65.
On the same day, investment bank Morgan Stanley lowered Alibaba's target price to $220 and maintained an “overweight” rating on the stock.
Last month, Alibaba founder, CEO and Chairman Ma Yun announced that on September 10, 2019, the 20th anniversary of Alibaba, he will no longer serve as the chairman of the Alibaba Group Board of Directors, and is currently CEO of Alibaba Group. Yong (Xiaoyao) will take over the position of Chairman of the Board of Directors. On the day of the announcement, the company's share price fell slightly to $157.
On October 1, Alibaba confirmed that Ma Yun has given up ownership of the company's main variable interest entities (VIEs), which hold Ali's operating licenses and certain assets in mainland China. VIE is generally used to enable Chinese technology companies to accept investments from overseas entities.
Alibaba said the change was to ease Ma Yun’s administrative burden, and the company disclosed the news in a document submitted to the US Securities and Exchange Commission in July this year.