Alibaba is quickly sinking towards its IPO price

Alibaba’s share price is in danger of breaching its IPO price of $US68, less than a year after the trading debut.

The Chinese e-commerce giant priced its huge initial public offering — the largest ever — in New York last September.

It went on to hit a high of $US120 in November, but has fallen hard since then.

It hit a low of $US68.30 in trading this morning, its lowest share price since listing.

The fresh low comes as concerns over China’s growth makes investors skittish.

Outflows from equity funds over the past week stand at a 15-week high of $US8.3 billion. The Shanghai Composite index has fallen 11% this week.
US stock indexes also fell for a fourth day in a row in early trading.

This month, the Chinese e-commerce giant also reported quarterly sales that were lower than expected. The total value of goods sold through the marketplace, grew 34%, the slowest pace in three years, according to Reuters.

Alibaba isn’t the only tech company to see its share price fall back to where it priced its IPO. On Thursday, shares of Twitter closed at $US26 — the level where Twitter shares priced for the November 2013 IPO — for the first time ever.

Twitter was trading up around $US26.50 at 10AM EST on Friday.

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