Alibaba (BABA) Falls on Heating Competition in China

Alibaba Group Holding Limited (NYSE:BABA) is one of the 10 Stocks That Investors Are Dumping.

Alibaba Group declined by 3.85 percent on Wednesday to end at $103.83 per share as investor sentiment was dampened by the cut-throat competition between the company and JD.com in servicing the expanding online market in China.

This followed JD.com’s pledge on Wednesday to allocate some 10 billion yuan ($1.4 billion) to support so-called benchmark brands across various categories amid the growing daily orders in China, reaching a new high of over 200 million.

The plan reflected JD.com’s efforts to dethrone Meituan as China’s top on-demand local delivery services provider, while also fending off competition from Alibaba Group Holding Limited (NYSE:BABA).

Earlier this month, Alibaba and Meituan went on a promotional war, flooding the market with discount coupons that allowed consumers to buy at unusually low prices.

Alibaba (BABA) Falls on Heating Competition in China

An e-commerce platform displaying a wide range of products to customers online.

The program was said to have pushed delivery riders to work on extended hours to meet the surging demand.

Meanwhile, Alibaba Group Holding Limited (NYSE:BABA) announced recently that it successfully raised HK$12 billion ($1.5 billion) through the issuance of a bond offer through 2032.

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Disclosure: None. This article is originally published at Insider Monkey.