Record "Singles' Day" Sales Spark Biggest BABA Sell Off Since IPO

As everyone knows in today's new normal world of investing, "good news is bad news" and indeed it seems a record "Singles' Day" sales record of around $9.3 billion (up 59% YoY) was enough of 'good news' trigger to spark the worst day in BABA since the IPO. Today's 4% drop of course is nothing compared to the 45%-plus gains off the Bullard lows, and we suspect the BoJ or GPIF will be back in action soon to BTFD. Profit-taking? Sell the news? Or perhaps it was Jack Ma's Elon-Musk-esque comments on how his high stock price is based on very high expectations and he is feeling the pressure.

Selling started last night but The Jack Ma interview seemed to spark some further weakness...

Quite a ramp off the Bullard lows...

As total chaos reigned at the open...

Chart of $BABA open today (is this crazy pricing or what?) pic.twitter.com/ATsT6QbbRI

— Eric Scott Hunsader (@nanexllc) November 11, 2014

Comments

[DoChenRollingBearing]

Alibubble?

[nope-1004]

Yes.  Totally representative of ZIRP and .gov giving banks free money.  Equities companies are catapulted higher because the pricing mechanism used to value them (USD) is totally debauched.  Thinking there is value in this company at its current price level ignores how mis-priced the valuation instrument (money) is to begin with due to ZIRP.

Fed bubble after Fed bubble ad nauseum.

[Divided States ...]

Yup, and the rich gets richer because they are the only ones with capital to play with.....

and Jack Ma reminds me of the Predator...god, hes one ugly motherfucker.

[TruthInSunshine]

Alibaba, the new Amazon, for all your consumer needs:

http://www.alibaba.com/product-detail/Max-Dia2-8-7-5cm-50g_610854125.html

http://www.alibaba.com/showroom/fleshlight-pussy.html

http://www.alibaba.com/trade/search?fsb=y&IndexArea=product_en&CatId=&Se...

[Bangalore Equit...]

Listen.

This is an exceptional comment!

[TruthInSunshine]

Alibaba
Minimum order/lot size: 1000 pieces
4" Steel Cock Ring
Subscribe & Save: 0.58 USD per unit/$580 for 1000 units
Jack Ma guaranteed

[1stepcloser]

sum ting wen wong

[timeless21]

We Tu Lo

[Never One Roach]

Ho Lee Ba Ba

[LULZBank]

Algos read "Alibaba" and "largest single day sale" and started to SELL SELL SELL.

[LULZBank]

high stock price is based on very high expectations and he is feeling the pressure.

LOL.

[cherry picker]

It is Obama's internet 'rules' for 'legal' sites scaring away investors.  Amazon needs protection as does EBay

Alibaba may be classified as 'not acceptable or legal' by DC for one reason or another, there goes potential.

Who would invest in something with that possibility looming?

[yogibear]

Fed ZIRP and QE forever to make up for dying middle class and the consumer.

[Never One Roach]

Middle what?

[buzzsaw99]

$285B market cap. lulz my rass roff

[praps]

Hu Phlung dung

[TruthInSunshine]

Jack Ma Flung Pu All Over Yoo

[Bangalore Equit...]

Listen. Excellent comment!

[Pantalone]

Canary make lousy housepet. 

[MansaMusa]

lolol, all jokes aside I'm confused. $9.3 billion in a day of sales?  And the stock tanks?  Can someone break it down for me, thx

[buzzsaw99]

speculators jam the stock higher on nothing then kick in the sellside on good news hoping for a decent price but there is no real market so it tanks.

[TheRideNeverEnds]

The stock has rallied over 20% in the previous five trading days, down 3.5% today is nothing.

[Latitude25]

But but but I just bought a jacket from alibaba and the 400 million thieves for $30 that costs $300 here in the US.

[Jonathan Equine...]

All this means is its a good time to buy.

http://www.cnbc.com/id/102171362

I'd sell on or about December 24th, though.

edit:  p.s. the comments at cnbc are enlightening.  One fellow offered the notion that the markets may be rigged!  Naturally, every honest and insightful financial site will have its share of nuts, day traders, and other people who couldn't survive 3 days in the woods...

[Bemused Observer]

So, 9 billion in sales...of course it's a sell-signal. This guy Ma obviously doesn't know what he's doing...you're supposed to BUY BACK your own stock to make the price go up, not SELL your actual stuff...duh!

Who does this guy think he IS anyway? SELLING stuff to people...as if THAT is why we go into business! We go into business to provide returns to shareholders, PERIOD! This guy wants to drag us all back to the Dark Ages, when businesses provided goods and services to customers and tried to gain market-share...Philistine!

Hey Ma, the twentieth century called, they want their business model back!

[MansaMusa]

Thanks for indirectly answering my question, so this is some stock paper asset shit; no news here for me. Continue to stack high bitchezz...wake me up when something serious happens like Russia rolling into Ukraine!

[scam_MERS]

Short this bitch into the ground (not just yet, soon), they're not doing anything that a hundred other competitors aren't doing (and many doing better). Their website is an absolute mess, return policy worthless, garbage plastic stuff that breaks - and you get to wait for three weeks to forever to recieve what you bought and paid for (if you're lucky enough to recieve it at all).

[NidStyles]

That's because you don't live in their targetted market. Amazon does just as poorly in China.

[starman]

In other news ; Jack Ma to merry Pet.com heiress. 

[MansaMusa]

and Miley Cyrus to be the flower girl.

[Tachyon5321]

I have noticed that Alibaba has lots of industrial products, like generators and washing machines, that require you to contact the manufacturer for pricing and delievery. Looks like Alibaba doesn't stock, deliever or arrange payment. It is hard to say what value Alibaba provides if any at all.