Recap of what happened last Friday? Huge e-commerce giant Alibaba IPO’d and absolutely killed it. Stock prices surged from $68 to $100-ish, then back down to $92 by the end of Friday. What happened today?
For today’s update: The S&P 500 lost 0.8% today, and DJIA dropped 0.62%. Could this drop be explained by the highs and lows of Alibaba? Are we riding an emotional roller coaster named BABA (I think it’s the most fun ticker to say).
Nope, they aren’t that influential. Alibaba shares fell 3.4%. Their Market Cap was sitting at $230 Billion. No one is for sure what the future holds for Alibaba. The funny part is Yahoo, who owns 25% of BABA experienced a 5.6% drop in their stock price. That’s right guys, take it out on Yahoo.
The real driver today was in Small-Caps. Today, Small-Caps measured by the Russell 2000 index dropped 1.53%. Why? Maybe Alibaba had more of an impact than I said. This Market Watch points out that maybe people funded their buy-in to Alibaba by selling holdings in Small-Caps. Another fun fact it points out is that the whole Russell 2000 Index is $2 Trillion in Market Cap and Alibaba is at $230 Billion. Wow.