There's a new record low for a tech giant. Alibaba Group Holding Ltd. (NYSE: BABA) stock sunk below its IPO price Monday, following the Chinese stock market crash that has been dubbed China's "Black Monday."
China's market dropped 8.5 percent Monday morning, and at market open in the United States, the price fell to $58.95 per share. That drop comes nearly a year after the Chinese e-commerce giant made its Wall Street debut. The opening price puts it down by 13.54 percent. The company had closed at $68.18 on the NYSE. Though based in China, Alibaba does not trade on China's Shanghai Composite, which has been at the heart of Monday's meltdown.
Alibaba made headlines when it was initially priced at $68 per share -- the largest public offering price for a company listed in the United States -- in September 2014. The peak price for the stock hit $120 and was seen as undervalued, CNBC's "Mad Money" host Jim Cramer said at the time, given Alibaba's "great organic growth," The Street reports. But Alibaba's stock has suffered in 2015, especially this quarter. On Friday, the price had fallen to $68.30.
Investors have been moving away from Alibaba. Regulatory filings revealed that billionaire financier George Soros' fund, Soros Fund Management LLC, had sold its majority stake in the company, and Yahoo had announced plans to sell off its stake.