Alibaba is down over 10% this morning following a disappointing earnings release. This comes on the heels of selling pressure after the Chinese government released its report claiming significant "issues" at China's richest man's company. A combination of weak revenues, a 28% plunge in net income, slower than expected growth on its Tmall platform (and disappointment at the progress into mobile advertising) have sent the stock tumbling back near Facebook's market cap.

BABA is now trading below the opening print on IPO day...

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As Bloomberg reports,

After September’s IPO and a record 57.1 billion yuan in transactions during a Nov. 11 promotion, Alibaba faces a decelerating Chinese economy and scathing criticism from the government for alleged lax oversight of its websites.

“The revenue increase was much lower than people expected,” said You Na, an analyst at ICBC International Research Ltd. in Hong Kong. “As more merchants start advertising on its mobile apps, revenue growth could slow as ad space and the fees it charges will be lower than what they charge for on desktops.”