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Alibaba is at an all-time low

May 5, 2015, 20:19 IST

Shares of Alibaba fell to an all-time low on Tuesday.

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The stock dipped by more than 3% to as low as $77.77 per share in early trading on Tuesday.

This year, the stock is down 25% year-to-date, and about 17% lower from the initial public offering price last September.

The Chinese e-commerce giant will announce quarterly results on Thursday for its third time since going public.

In an earnings preview Tuesday, Morgan Stanley analysts note that in a speech on April 23, Alibaba CEO Jack Ma said he expects a headcount freeze in 2015, although they do not think it was his core message.

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"Most interpreted the message as a hint of potential earnings pressure in the near term, with the need to control costs after rapid growth," the analysts noted.

"In the speech, Ma did warn a few times that the restructuring/optimization of various business units in 2015 could impact near-term performance," the analysts further noted.

They have an "Overweight" rating on the stock.

Here's a chart showing the plunge in trading on Tuesday:

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(H/T StockTwits)

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