Benzinga | Oct 25, 2021 02:49PM EDT

Alibaba Stock Loses $344B In A Year In Historic Wipeout

In just a year, Alibaba Group Holding Limited (NYSE:BABA) has lost around $344 billion in market capitalization, the largest-ever decline in shareholder value globally, reports Bloomberg.

Last year, Alibaba founder Jack Ma faced summons from the Chinese authorities when they suspended the listing of Alibaba's fintech arm Ant Group.

With that, Alibaba's shares started sinking and authorities urged a restructure of its fintech business. The stock remains 43% lower than its October 2020 peak.

According to a Wall Street Journal report, Alibaba's share of China's retail e-commerce market has fallen from 78% in 2015 to a projected 51% in 2021.

However, the recent reports that Ma was in Europe have led to a 6% jump in the company's shares.

Alibaba is facing growing competition in the market as well.

A shift in the consumer shopping format moving from search to browsing has worked against Alibaba.

In May, Chief Executive Daniel Zhang named increased competition as one of the company's biggest obstacles of the past year.

"Any profit that exceeded last year's would be poured back into improving its e-commerce businesses," Zhang said.

Alibaba is investing more in content creation, live-streaming, and discount goods to gain momentum and tap this area.

Alibaba is set to report earnings on Nov. 5.

Alibaba co-founder Jack Ma. Benzinga file photo by Dustin Blitchok.