Alibaba slips 4.3% in post-IPO trading

Shares of freshly minted IPO Chinese e-commerce giant Alibaba dropped 4.3% Monday, hurt by Wall Street's broad market selloff and profit-taking after Friday's 38% surge.

Alibaba, which climbed $25.89 to $93.89 in its Friday debut, closed off $4 to $89.89 Monday. The slide was part a broader tech and market selloff that clipped the Standard & Poors 500 Index nearly 1% 1,994 and pushed the tech-heavy NASDAQ 1.1% lower to 4,528.

"I don't think there's anything to be concerned about Alibaba, especially after the pop it had Friday,'' says James Gellert, CEO of Rapid Ratings International, which measures the financial health of companies.

"High fliers like this are going to have volatility and up days and down days. Support for the stock and the company is extremely good,'' Gellert said. "If it was down 30%, that would be an issue."

Alibaba's IPO raised $21.8 million. Underwriters bought another 48 million shares, Alibaba said Monday, pushing the size of the deal to $25 billion, ahead of the record $22 billion raised in 2010 by Agricultural Bank of China Ltd.

Most stock analysts remain positive. MKM Partners' Rob Sanderson issued a buy rating Monday and set a $125 price target.

Analysts aren't so optimistic about Yahoo! which holds a 22% stake in Alibaba. Shares lost 5.6% to $38.65 after dropping nearly 3% Friday.

Behind Monday's Yahoo! selloff: downgraded ratings by analysts at Sanford Bernstein and Merrill Lynch.

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