For the first time in history, Alibaba Group Holding Ltd.'s stocks slumped lower than their initial public offering (IPO), as China's stock crash alarmed the global markets.
The e-commerce titan flopped 3.5 percent to close at $65.8 on Monday in New York, dropping below its September IPO price of $68. Meanwhile, the Dow Jones Industrial Average and the S&P 500 plunged 3.6 and 3.9 percent, respectively.
Over $120 billion market value has vanished since Alibaba's stocks reached an all-time high of $119.2 in November. Since then, the stock's position has been afflicted by news of China's stalled growth, its recruitment halt, and alleged disregard for counterfeits and fraudulent transactions among Taobao sellers who wanted to brag their sales performance to attain prominence.
The leading e-commerce firm pledged to purchase back as much as $4 billion of stock over the next two years, Alibaba announced in early August, as it diverts efforts to correct dilutions from compensation programs and reassure investors.
Alibaba arrived at the buy-back plan as it announced its quarterly sales that had the weakest growth in at least three years, according to data from Bloomberg. The firm's revenue grew 28 percent to 20.2 billion yuan ($3.2 billion) in the previous three months ending in June.
It was not only Alibaba that has been struggling with the slowdown, as Jumei International Holding, a U.S.-traded e-commerce corporation in China, also plunged 15.7 percent on Monday. Same went for JD.com, which plummeted 4.5 percent. Internet search firm Baidu receded 7.7 percent, while social media sites Momo and Renren slid more than 9 percent.
Shanghai Composite Index, China's benchmark, opened at a 6.4-percent low on Tuesday, preceded by an 8.5-percent dive on Monday, marking its largest downfall since 2007. The index traded at 3,113.55, down 3 percent as of 10:35 a.m.