Alibaba Group Holding’s stock fell more than 3% on Monday as investors reduced risk exposure following President Trump’s renewed tariff threats over the Greenland dispute. The pullback came after the shares had rallied strongly in prior sessions, with trading volumes on the Hong Kong exchange rising 20% above the ten-day average. Analysts noted that higher geopolitical uncertainty could weigh on cross-border trade volumes and cloud services demand for Chinese exporters, two areas where Alibaba derives a substantial portion of growth.

Alibaba’s quick commerce arm reported a 60% year-over-year revenue increase in the latest quarter, driven by expanded local delivery networks and promotional campaigns. Daily active users climbed to over 45 million, up 35% from a year earlier, as merchants tapped Alibaba’s logistics platform for last-mile fulfilment. However, heavy subsidy programs and increased labor and transportation costs have squeezed operating margins down to the low single digits, prompting management to signal tighter cost controls and targeted pricing adjustments in 2026.

In its cloud computing division, Alibaba is confronting new competition from ByteDance’s recent push into enterprise services. ByteDance Cloud has signed over 200 customers since its launch six months ago—several of them major media and gaming firms—challenging Alibaba’s leadership in Asia. Alibaba Cloud still holds a market share of roughly 40% in Greater China, according to industry tracker IDC, but growth decelerated to 32% year-over-year in Q4, down from 45% in the same period last year.