Alibaba chief executive Daniel Zhang has told employees to "forget about the share price" and focus on their jobs as the group’s stock sank below its initial public offering price of USD68 for the first time.
Technology stocks have been hit by the market turmoil in China. But while US companies such as Apple have seen their share prices recover, Alibaba’s have continued to languish. Following a record-breaking listing on the New York Stock Exchange in September that raised USD25bn, Alibaba’s share price rose to USD119 in November but since then has dropped as low as USD58.14 before closing at USD65.86 on Monday last week.
Many of Alibaba’s employees are shareholders and the share price fall has hit morale hard. But Mr Zhang delivered a stern reminder to employees on Tuesday to take a long view of the company’s prospects.