Alibaba shares could slide another 50%, says Barron’s

It said the article, authored by Jonathan Laing, “contains factual inaccuracies and selective use of information, and the conclusions he draws are misleading”. The stock market sided with the publication all day as shares closed Monday’s trading session down 3.14% to $62.60 on heavy trading volume.

In a letter published on its website addressed to Barron’s editor, Alibaba said: “Your 12 September article with the sensational headline “Alibaba: Why It Could Fall 50% Further” lacks three key ingredients – integrity, professionalism and fair play”. The higher price target estimate for the stock has been calculated at $125 while the lower price target estimate is at $80.

Specifically, Alibaba said it is fallacious for Laing to compare the company’s price-to-earnings ratio, which at 39 is high for Internet players, to eBay (EBAY) because the United States of America e-commerce titan does not operate in China.

Many shareholders would rather see a company’s management keep its head down and focus on managing the business instead of attacking reporters who question the stock price.

Alibaba, the Chinese e-commerce darling that exploded past year in its public market debut, is getting hammered today after a distressing piece in Barron’s predicts the stock will decline by half. Finally, Zacks raised shares of Alibaba Group Holding from a strong sell rating to a hold rating in a research note on Tuesday, May 19th. The implication here is that Massachusetts took one of Alibaba’s most profitable units and moved it into a safe place where only he had claims on profits.

The company does face increased competition, particularly from JD.com, which is backed by the Chinese mobile giant Tencent and Saudi Prince Alwaleed bin Talal.

“I think given the stable trends in Chinese wage growth, job creation and household net assets, we believe the consumers still have the willingness and the ability to spend”, she said.

A central theme of the story is Alibaba’s founder Jack Massachusetts , and his rise to fame and fortune, and whether his ability to lead and manage is legit, or a product of his polished salesmanship.

He goes on the say that the Barron’s author fails to consider “several important facts” about Alibaba’s history of its publicly traded B2B subsidiary – ignoring the fact that Alibaba’s B2B subsidiary grew revenues during the global financial crisis of 2008, Wilkinson wrote.

To be sure, this will be a story that has not fully been digested by investors or analysts.