Alibaba Group Holding shares slid more than 3% on Monday following renewed U.S. tariff threats tied to the Greenland dispute. The decline came after a strong multi-week rally, as investors sought to reduce exposure to perceived trade risk. The move erased approximately $13 billion in Alibaba’s market capitalization in a single session, marking the steepest one-day percentage drop for the stock since late October 2025. Trading volume was roughly 25% above the 30-day average, underscoring the intensity of the sell-off.

In its most recent quarterly report, Alibaba disclosed that quick commerce revenues jumped 60% year-over-year, driven by increased order frequency on its Ele.me platform and expansion into 200 new tier-2 and tier-3 cities. Despite this growth, the company reported that operating margins in its local services segment contracted by 4 percentage points, largely due to heavy subsidy programs for consumer promotions and rising last-mile logistics costs. CFO Toby Xu noted that the segment would remain loss-making in the near term as Alibaba seeks to consolidate market share.

Alibaba Cloud is facing fresh competitive pressure from ByteDance, which has begun offering enterprise cloud solutions targeting retail and gaming clients. According to IDC, Alibaba Cloud’s revenue growth slowed to 32% year-over-year in Q4 2025, compared with 45% in the same period a year earlier. ByteDance’s new offering has already secured pilot contracts with two major e-commerce merchants in eastern China. Alibaba’s management has responded by pledging additional R&D investment and price-performance enhancements, but investors remain cautious about potential margin dilution in the segment.