Alibaba has seen $80 billion wiped off its market value since the escalation of the US – China trade war in May, and could post its slowest growth in years this week.
The trade war between the US and China has taken a major toll on China’s largest tech companies, and its largest ecommerce retailer Alibaba has seen its shares plummet in response.
Since May when Alibaba’s shares were worth $195.21 each, equating to market valuation of $496.56 billion, its shares have divebombed 18.4 per cent to $159.3 per share, seeing its market capitalisation drop to $417.84 billion.
The tech giant is due to release its quarterly results this week, and is expected to reveal a 27 per cent growth in profits, marking its fourth consecutive period of growth.
However, its sales are expected to have risen by 38 per cent, its lowest growth rate in 14 quarters.
This mirrors a more widespread downturn across China’s largest tech companies, with combined revenues expected to have dropped 26 per cent over the last quarter, the slowest growth in 18 months.
Alibaba is eyeing a second public listing in Hong Kong, set to be the most valuable follow-on share listing in seven years, and will be relying on strong quarterly results to entice investors.