For those who follow Alibaba news dilligently, it was announced a month ago that Alibaba will be splitting its conglomerate into 6 units. It was a positive news which saw share prices rallying 20% over the next week. However, one month later, the 20% gain has since been wiped off and we are back to square one - at pre announcement prices. Stock Market Voting Machine Short Term, Weighing Machine Long Term There is a saying about the stock market: "In the Short-Run, the Market Is a Voting Machine, But in the Long-Run, the Market Is a Weighing Machine" This is dramatically true in Alibaba's case. The split up news made people exhuberent but once they realise nothing much changed about the business, the party ended (the downward movement in share prices is also partly attibuted to the US banking crisis which soured all stocks) This comes to show how sensitive stock market paticipants are to the news and hypes....