Alibaba Group shares were falling on Friday as the market digested its earnings. Excitement over its plans to spin off a series of its units have been undercut by concerns over its cloud-computing business.<\/p>\n
Alibabas (ticker: BABA) American depositary receipts (ADRs) were down 2.1% in Fridays premarket to $83.96. That leaves them trading at roughly the same level they were before Alibaba detailed its plans to split itself into six units in late March, which sent the ADRs above $100.<\/p>\n
It...<\/p>\n
Alibaba Group shares were falling on Friday as the market digested its earnings. Excitement over its plans to spin off a series of its units have been undercut by concerns over its cloud-computing business.<\/p>\n
Alibaba s (ticker: BABA) American depositary receipts (ADRs) were down 2.1% in Fridays premarket to $83.96. That leaves them trading at roughly the same level they were before Alibaba detailed its plans to split itself into six units in late March, which sent the ADRs above $100.<\/p>\n
It was a similar story in Hong Kong trading, where Alibaba shares fell 6% and are now down 4.4% for the year so far.<\/p>\n
The Chinese technology companys first-quarter earnings on Thursday were initially well received. However, analysts subsequently focused on a disappointing performance in the prized cloud division, where revenue fell 2% from the same period a year earlier.<\/p>\n
Both Alibaba and rival Tencent have announced price cuts for their cloud-computing services amid weak corporate demand and excess capacity, which has plunged the industry into a price war, wrote Sergio Avila, a market analyst at IG, in a research note.<\/p>\n
Advertisement - Scroll to Continue <\/p>\n
Write to Adam Clark at adam.clark@barrons.com<\/a><\/p>\n <\/p>\n Go here to see the original:<\/p>\n Alibaba Stock Is Falling. The Breakup Bounce Has Faded. - Barron's<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Alibaba Group shares were falling on Friday as the market digested its earnings. Excitement over its plans to spin off a series of its units have been undercut by concerns over its cloud-computing business Continue reading