NEW YORK ( TheStreet) -- Alibaba Group (BABA) - Get Report plunged after reporting disappointing earnings, dragging its investor Yahoo (YHOO) down with it. Twitter (TWTR) - Get Report edged lower despite announcing plans to discontinue limiting direct messages sent over its platform to only 140 characters. Chinese search company Baidu (BIDU) - Get Report plummeted as China devalued that country's currency.
Alibaba tanked 5.1% to close at $73.38. Yahoo!, which holds a 15% stake in Alibaba, plunged in sympathy by 4.3% to $34.49.
Investors panned the Chinese Internet giant, after it reported fiscal first-quarter earnings of 59 cents a share on revenue of $3.27 billion. Wall Street was expecting the company to earn 58 cents a share on revenue of $3.39 billion. Wall Street may also have been concerned Alibaba's growth rate was the slowest uptick in more than three years, according to a CNBCreport.
Alibaba noted in its fiscal first-quarter earnings report that its revenue increased 28% over the same time last year. But the company acknowledged that its revenue growth rate was lower in comparison to its Growth Merchandise Value (GMV) rate of 34% year over year. It cited the suspension of its online lottery business, a pricing decrease on Juhuasuan and a drop in revenue from its small to medium loan business as contributing to the GMV decline.
Twitter fell 0.78% to finish the day at $29.39.
The micro-blogging site failed to win investor love with its removal of the 140-character cap it places on direct messages that its users send to each other via its platform.
Twitter, according to a Business Insiderreport, noted that the company first unveiled plans to remove the cap on direct messages back in June. As a a result, Twitter's action Wednesday may have already been accounted for in the stock.
As Fortune points out in its report, Twitter still maintains its 140-character cap on users' public tweets.
Baidu plunged 4.2% to finish the session at $160.82.
The Chinese search giant took a hit as the yuan was devalued by China's central bank on Wednesday. One concern over the actions by China's central bank is that companies based in that country that have dollar-denominated debt will damp their dollar-based earnings, according to an Investor's Business Dailyreport.
In addition to Baidu feeling the fallout from actions taken by China's Central Bank, other Chinese companies, including Alibaba, and U.S.-based firms with a presence in China also saw their share price impacted, according to the report.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.