Alibaba Group Holding saw its Hong Kong–listed shares decline more than 3% on Monday, retracing gains from a recent rally. The selloff was driven by renewed U.S. tariff rhetoric from President Trump over the Greenland dispute, which roiled Asian markets and prompted investors to reduce risk exposure. Trading volumes in Alibaba shares jumped 25% above the 30-day average as funds rotated out of large-cap technology names, reflecting heightened geopolitical concerns.

Alibaba’s quick commerce business recorded a 60% year-over-year revenue increase in the December quarter, driven by expanding coverage in 150 cities and the addition of 5,000 new dark kitchens. However, the unit’s gross profit margin contracted by 420 basis points, dipping below 12%, as heavy subsidies on delivery fees and elevated logistics costs weighed on profitability. Management signaled that margin improvement will hinge on economies of scale and more selective incentive programs in the coming quarters.

Alibaba Cloud, the company’s fastest-growing division, faced fresh competition from ByteDance after the rival launched cloud offerings targeted at small and midsize enterprises. Alibaba Cloud reported revenue growth of 28% year-over-year in Q4, outpacing its peers, but executives acknowledged pressure on pricing and customer acquisition costs in Southeast Asian markets. The division spent approximately $450 million on infrastructure expansion during the quarter, illustrating its commitment to defending market share against well-capitalized challengers.