Shares of China’s largest technology company, Alibaba, were down about 10 percent at the start of the trading day on Wednesday, after it reported a drop in revenue.
The share price of the Chinese e-commerce giant, valued at $6.3 billion, fell by about 20 percent to around $2.2 billion.
Alibaba said it saw an initial impairment charge of $1.4 billion related to its sales of cloud computing services.
Alibaba is the second-largest Chinese technology company by market capitalization and the largest in the world by revenue.
Alibaba also reported that its revenue from cloud computing and related products decreased by $1 billion in the fourth quarter.
Alibaba shares have fallen about 50 percent over the last two years.
The company posted revenue of $19.9 billion for the fiscal fourth quarter ended June 30, and revenue growth of 17 percent from the previous year.
The stock is down about 25 percent in recent months.
_____Reuters: Alibaba shares fall, China stocks up on Alibaba-linked news article China’s biggest technology company Alibaba reported a big fall in its revenue last quarter, according to the Wall Street Journal, as it revealed it was selling its cloud computing business to a rival.
The Journal reported Wednesday that Alibaba, which sells Internet services, has agreed to sell the cloud computing service business to Chinese Internet company Tencent Holdings Ltd.
Tencent is also one of the largest Chinese Internet companies and has been a target of U.S. authorities.
Alibaba had reported a loss of $664 million in the fiscal third quarter.
____AP: Alibaba stocks rally on Alibaba stock news article Alibaba shares soared by more than 20 percent Wednesday after Alibaba announced it would sell its cloud services business to Tencent, which also owns a large stake in the company.
Alibaba, whose market value is $6 billion, said it would take a 45 percent stake in Tencent to cover its share of the cloud services deal.
Ten cent, which operates its own cloud computing businesses and also sells data centers, is the largest shareholder in Alibaba.
_______Associated Press: Alibaba stock surges on Alibaba news article Tencent said it is acquiring the cloud data center business from Alibaba and plans to invest in Alibaba-related technologies and investments, including new research facilities and a new headquarters.
Ten will acquire a 30 percent stake and Alibaba will hold 35 percent.
Alibaba has about 2,000 employees in the U.K. Ten is expected to pay $2 billion for Alibaba and the deal is expected later this year.
___________Associated Press : Alibaba shares soar on Alibaba share news article In a move that could signal that the company’s leadership is ready to sell off its cloud business, Tencent on Tuesday announced it is buying an 8 percent stake of Alibaba, including Alibaba’s data center operations and a 50 percent stake on Alibaba and Alibaba-backed technologies.
___________________________________________________AP: China stocks rally as Alibaba shares rally on news article The Shanghai Composite Index rose nearly 2 percent to 3,500.
The Shanghai Bank, which is part of China Central Television, said the Shanghai Composite is up more than 4 percent this year after the S&P 500 Index fell nearly 1 percent on Tuesday.
___Reuters: China stock rises as Alibaba stock gains on news