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Alibaba may slip back to IPO price: Analyst
Alibaba (BABA) could dip to its IPO price of $68 per share, but its outlook is far from gloomy moving forward, an analyst said Thursday.
"Short term I am bearish. Long term, there are a lot of great reasons to own Alibaba," Jeff Kilburg, founder and CEO of KKM Financial, told CNBC's " Power Lunch ."
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U.S.- listed shares in the Chinese e-commerce company have shed more than 20 percent in the last three months and were trading around $85 on Thursday afternoon. The stock is in "price discovery mode" after "tremendous volatility," he said.
Kilburg said, though, that he would buy the stock if it slipped below $70 per share. It priced at $68 in September.
A looming lock-up expiration has wrought more uncertainty. On March 18, 429 million more Alibaba shares will become available.
"It's always difficult when there's big supply coming to the market," Rob Sanderson, senior analyst at MKM Partners, told "Power Lunch."
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He added that many investors will be watching how it trades into and through the lock-up expiration, which is not a fundamental indicator for the company.
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