Alibaba's stock decline despite acquisition spree is due to its traditional business strategy, says Forbes

Chinese Internet giant Alibaba has been on an acquisition spree for the past two years, but it is baffling that its stock prices are in a downward slope. Experts blame the traditional businessman strategy of the company and China's economic slowdown.

In a report by Forbes, Giga Om editor Derrick Harris once said that Alibaba lacks innovation even though it is a technology company. It has a mindset inclined to being a traditional businessman than focusing on technological development. Another reason for Alibaba's declining stock is the Chinese economic meltdown, which suggests that China's fertile market is now headed to a bottleneck.

One example is Alibaba's acquisition of social networking Youku and video sharing Tudou. What Ali missed is that people want user generated information and content over advertising. Alibaba's acquired sites are more inclined on targeted advertising by searching for user data.

Alibaba's acquisition deals are aimed to gain access to every aspects to people's lives. Their total investment in acquisitions has increased three folds over a span of one year. One of its biggest deals was the $4.3 billion takeover of Youku and Tudou on October 16.

One of the latest acquisition news on the company is that it has set its eyes on buying Hong Kong-based South China Morning Post (SCMP), according to Bidness ETC. This would give the company a positive publicity, which would be very helpful as the company's stocks continue to dwindle down.

However, Insider Trading Report wrote that Alibaba lost 2.34 percent when news about the possible acquisition of SCMP broke out. There are no official reports, however, whether the acquisition is for Alibaba or for founder Jack Ma himself. Alibaba's cash flow is expected to provide enough resources for the media outlet to rebound from its financial problems.

For the last seven months, Alibaba has lost 3.38 percent and is still declining.