Alibaba Group Holding Ltd (NYSE:BABA) debuted in the market at the time that the market was enjoying an impressive run with the S&P 500 up 9% on a year-over-year. Since then, things have cooled down; Alibaba Group Holding Ltd (NYSE:BABA) has sunk from its near high of $94 and is currently trading at the mid $80. During an interview on Fox Business, Morgan Creek Capital Management CEO, Mark Yusko admitted that the market might be slowing down after reaching highs with the Alibaba Group Holding Ltd (NYSE:BABA) IPO.
Market fundamentals are slowly changing when compared to the previous months as the effects of the Ebola virus continue to bite with a slowdown in Europe making the situation worse. Some investors are already of the opinion that Alibaba IPO might have marked an end to the previous impressive rally.
“We have a cycle; we have a business cycle; the Fed did not eradicate the business cycle things are getting slower. It’s not dire we are not in the brink of recession, but there are some signs that things are getting worse, “said Mr. Yusko.
Being concerned about Alibaba Group Holding Ltd (NYSE:BABA) in the wake of the slowing market fundamentals might be an over-reaction, according to Yusko as the company remains profitable on the online landscape.
The market has in the recent past been recording dramatic moves with the 10-year yield hovering at the 2% range. The Dow Jones Industrial average is already down by 140 points raising concerns as to the direction the market might be headed to. A slowdown in Europe and increased concerns over the Ebola virus has already caused selloffs in the market with Hadgeye Risk Management director Daryl Jones expecting the trend to continue for some time.
Veracruz Research Founder Steve Cortes believes that Alibaba Group Holding Ltd (NYSE:BABA)’s IPO marked the top of the market and that the market direction heading into the New Year could change. Cortes also argues that the Ebola menace has been overblown, paving way for opportunistic traders to reap a great deal from the uncertainties in the market.
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