The Downfall Of Alibaba

Alibaba will be the world's largest e-commerce company by 2021. It sold goods worth 1.2 trillion dollars on its website, roughly double what Amazon did in the same time period in 2014. They raised 22 billion dollars in the largest IPO in history on the New York Stock Exchange. On the first day of trading, it had a market capitalization of about $170 billion. a little higher than Amazon.
China's GDP was on track to surpass that of the United States, and investors were clamouring for stock in the country's dominant e-commerce company. Everything went as planned for the first six years the company was publicly traded. Their stock price more than tripled, and their revenue and profitability continued to rise. at their 2020 peak, giving them a market value of $800 billion.
They appeared to be on track to become the first Chinese technology company with a market cap greater than $1 trillion. However, things have drastically deteriorated in the last two years. Their stock price has dropped by 70%, and the current value is only slightly higher than the IPO price eight years ago.
After criticising the Chinese government in a speech, founder Jack Ma went missing for a while, which initially turned public opinion against him. However, the company's problems extend beyond negative media coverage. After a decade of rapid growth, their financial performance has been steadily deteriorating.
Revenue has plateaued or even decreased slightly in recent quarters. This slight decrease in revenue has resulted in a dramatic drop in profitability over the previous year. Their net profit has dropped by 75% since its peak in 2020. So, what happened with Alibaba? How could such a massive corporation fail right in front of our eyes?

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