Traders are becoming increasingly concerned about Alibaba’s earnings potential, according to Ant Report

The stock of Alibaba Group Holding Ltd. dropped for the third day in a row as investors evaluated the potential repercussions of Jack Ma reportedly giving up control of his fintech subsidiary and as concerns over the company’s profitability continued to mount.

On Friday, shares dropped as much as 5.5 percent in Hong Kong, making them one of the companies with the largest percentage drops on the Hang Seng Tech Index. Next week, it is anticipated that the IT behemoth will publish its very first quarterly revenue growth that was in the red.

The selloff continued while market participants discussed the ramifications of a story that Ma may give up his authority over Ant Group Co., which Alibaba owns a third of. Alibaba owns a third of Ant Group Co. A change in leadership might potentially hold up Ant’s initial public offering (IPO), despite the fact that the move could help both companies cross some regulatory hurdles.

Kenny Wen, head of investment strategy at KGI Asia in Hong Kong, stated that “on top of earnings concern, there are some worries that the IPO timetable for Ant would be delayed by Jack Ma’s decision.” If there is a significant change in the key ownership structure of an A-share company within three years, the company will have a difficult time obtaining clearance.

Read: “Ma Is Giving Up Its Grip on Ants to Ease Risks, But Street Wrap Is Still Dangerous.”

Alibaba trades more than 9 percent lower than it did on Tuesday, when its announcement that it planned to switch its primary listing in Hong Kong to a primary listing fueled optimism regarding capital inflow from the mainland.

KGI Asia’s Wen also mentioned the fact that Hangzhou city’s market authority issued a warning about a price war to online food delivery platforms such as Ele.me, which is operated by Alibaba, as a reason why the stock is in a negative position.

The Hang Seng Technology Index experienced a maximum loss of 3.6 percent, bringing it below its 50-day moving average in trading. JD Health International Inc. and Kuaishou Technology were two other significant companies whose shares fell.