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Alibaba CEO: 'Let's forget about the stock prices'

Aug 25, 2015, 22:32 IST

ChinaFotoPress/ChinaFotoPress via Getty Images

On Monday, Alibaba's stock fell 3.5 percent amid the broader market selloff, closing below its September 2014 IPO price of $68 for the first time ever.

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But CEO Daniel Zhang, who took over three months ago, urged Alibaba's 35,000 employees to ignore the ticker and to stay focused on the business.

"Let's forget about the stock prices," Zhang wrote in a memo to employees, according to Bloomberg. "We should not be distracted by short-term obstacles, but plan for the future and stick to it."

"This is not the first time that the global stock market has plunged," Zhang added.

"It is not the last time, either. I hope everyone can shift the focus from the stock market to customers. Sometimes it is a lonely journey, sticking to your principles. But we have to go through lots of ups and downs during this journey. We are not in a single fight, but a fight that lasts for 102 years."

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On Monday, stocks tumbled worldwide. Alibaba has been sliding since its $119.15 peak in November. Part of the reason why could be the fact that China's stock market, the Shanghai Composite, has been tanking for the past two months, and it is down ~40% from its peak. This month, China devalued its currency, the yuan.

Zhang became Alibaba's chief executive on May 10, 2015, replacing Jonathan Lu. Lu had been CEO for two years.

On Tuesday afternoon, Alibaba was trading at $70.25, above its IPO price.

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