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Is Alibaba Running Out Of Steam?

Investors likely recall that Alibaba (BABA), the Chinese e-commerce giant, was one of the most highly-publicized initial public offerings in recent memory. When the company went public last year, it was among the biggest IPO ever. Alibaba debuted at $68 per share, and it wasn’t long before the stock ran up to $110 per share.

But now, all that seems like a distant memory. After disappointing earnings that missed estimates, Alibaba’s stock price has lost momentum. The company reported $4.2 billion in revenue last quarter, which represented 40% growth but still fell short of the $4.45 billion expected by analysts. Shares now trade for $85 per share, and analysts are turning increasingly bearish on the stock.