Alibaba stocks slide despite initiatives by the company
Alibaba Group Holding Ltd. remains undefeated when it comes to the transforming market cap. The strategy of the company is to bolster medium and small sized business so that they can churn in revenues additionally. At this point of time the sentiment of investors is not in favor of the company, so now the best thing for them is to redeem their credibility through the promotion of small businesses.
Jack Ma, the founder of Alibaba Group has advised all the large businesses to make use of their power in an efficient manner and assist developing nations and small companies in growing with their limited resources.
The initiative taken by the company seems like a safe bet since they have been struggling to maintain their market cap. Mr. Ma while addressing the attendees at the Asia Pacific Economic Cooperation in Manila unveiled a strategy of approaching the “Small Guys”. The founder of the largest E-commerce platform in China wishes to sign an agreement that is devoted to promoting business activities without the interruption of political forces.
The problems faced by small businesses at this point of time are that they cannot really come outside the box. These businesses are under the influence of heavy taxes that make it difficult for them to diversify their business models or think creatively. Such regulations can become a cause of extreme penalties and act as a barrier in ensuring economic stability particularly in developing countries.
Bloomberg quoted Mr. Jack Ma by stating, “Trade is a freedom, trade is a human right. Trade should not be used as a tool against other nations.”
This development has penetrated when the company is finding it relatively difficult to redeem its lost market cap. It is extremely astonishing for investors that despite the company have reported a relatively positive figure during the Single Day’s sales, still the Alibaba stock have not shown any signs of going towards the bullish side. After Single’s Day it has been observed that the stocks have embraced a 6% cut in market share. The stocks of the company further slid down recently where they lost 0.20% and closed at $78.13.
The sale of counterfeit and fake goods has actually damaged the credibility of the company because of which they have to face criticism from investors. The company despite trying its best has not been able to emerge successful. Thus initiatives like these will help them to surface out and embrace a change in the long run.
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