They calculate how much they would have earned if they had invested $ 1,000 in Alibaba shares when the company came on the stock exchange in 2014

In September 2014, e-commerce company Alibaba went public on Wall Street and received the largest public offering of sales in history: the placement reached around $ 25,000 million. The CNBC chain calculated the performance of the shares for those who invested at that time.

If a person had subsequently invested $ 1,000 at the closing price of September 19, 2014, his stake would now have an estimated value of $ 1,921.50 in March 2019. This means that the value of those shares has increased by 92% since the day the company became public.

However, this performance does not mean that it will produce comparable results in the future, as the latest data from the Chinese government has slowed the country's growth rate, the lowest for nearly 30 years.

"The slowdown in the Chinese economy makes it very difficult for Alibaba to succeed in the short and medium term," said Gil Luria, research director of the financial company D.A. Davidson, speaking to the aforementioned economic channel.

"China has not experienced a major economic cycle in the last 30 years, which means it is very difficult to predict the outcome of the current recession," he added.

Alibaba has a market value of approximately $ 468,000 million and its shares have risen more than 31% this year so far. The technology giant was founded in 1999 by businessman Jack Ma to connect Chinese manufacturers with foreign buyers.

Leave a comment

Send a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.