Alibaba Group Holding saw its Hong Kong–listed shares fall 3.2% on Monday, wiping roughly HK$60 billion ($7.7 billion) off its market capitalization. The decline came as investors reduced risk exposure following President Trump’s renewed threats to impose higher levies on Chinese goods, including e-commerce and cloud services. Trading volumes jumped 25% above the 30-day average, highlighting heavy sell orders from international funds. Analyst consensus now pegs the stock’s consensus 12-month target at HK$118, down 8% from last week’s average.

During the third quarter ended September, Alibaba’s quick commerce businesses—covering platforms like Freshippo and 30 Minute Delivery—reported 60% year-over-year revenue growth, reaching RMB 18.2 billion. Daily active orders climbed to 4.6 million, up from 2.9 million a year prior. However, subsidies and logistics expenses surged by 45% sequentially, driving segment adjusted EBITDA margins into negative territory at –2.8%, compared with –0.5% in Q2. Management indicated that margin recovery is not expected until the latter half of fiscal 2026.

Alibaba Cloud grew 15% year-over-year in the third quarter, generating RMB 26.4 billion in revenue, but its growth rate is the slowest in four quarters amid new entrants. ByteDance’s nascent cloud arm has reportedly secured over $1 billion in enterprise contracts since launch, targeting multimedia and video-streaming customers. To defend its lead, Alibaba has pledged RMB 5 billion in R&D this fiscal year to enhance AI-driven data analytics and reduce per-unit computing costs by 12%.