Alibaba’s market cap down by 30.3% in Q3
Its value stood at $212b.
Chinese retail giant Alibaba’s market capitalisation declined by 30.3% to $212b in the third quarter of the year, GlobalData reported.
Another Chinese retailer JD.com also saw its value drop by 21.4% to $80b.
“Alibaba and JD.com witnessed a decline of more than 20% in their valuations in Q3 2022,” Ragupathy Jayamaran, Business Fundamentals Analyst, said.
“The Chinese government’s regulatory crackdown on organizations and mass lockdowns in the country continue to raise concerns for e-commerce companies.”
Read more: Alibaba, Pinduoduo amongst top 25 retailers globally
The top 25 global retail companies combined recorded a 2.7% decline in value during the quarter. This is approximately $90b.
“The retail industry is marred by uncertainty due to various factors such as volatile global economic conditions, foreign exchange fluctuation, and high inflation. However, social commerce, omnichannel solutions, and automated technology are some of the continuing trends in the retail industry,”Jayamaran also said.
Amongst the leading retailers, Amazon was the only company to record a gain of around $70b. Meanwhile, US retailers Ross Stores and TJX also reported growth in market cap of 19% to $29.2b and 10.2% to $72.1b, respectively.
“Despite mounting inflationary pressures and reduced consumer spending, US retailers Ross Stores and TJX reported growth in their market cap in Q3, while South Korea-based Coupang was able to improve its valuation in the past six months due to its wide range of products and fast shipping times,”Jayamaran.