Alibaba Group Holding saw its Hong Kong–listed shares fall more than 3% on Monday following renewed U.S. tariff threats over the Greenland dispute. The pullback came after a recent multiweek rally, as investors rotated out of global equities perceived as sensitive to trade tensions. Trading volumes spiked 28% above the 30-day average, highlighting the scale of the risk-off move in the wake of President Trump’s comments on additional levies for goods tied to China.

The company reported that its quick commerce unit delivered 60% year-over-year revenue growth in the most recent quarter, driven by expanded partnerships with neighborhood grocery chains and faster delivery times. However, unit economics remain challenged: heavy subsidy programs and higher fuel and warehousing costs reduced operating margins in the business by an estimated 450 basis points sequentially, according to internal projections shared with analysts.

Alibaba Cloud continues to face intensified competition from ByteDance’s emerging infrastructure business. In the latest tally, Alibaba reported 35% annual growth in cloud revenue, but overall market share slipped by roughly 2 percentage points in China’s IaaS segment. Customer wins in the logistics and gaming sectors have helped soften the impact, though ByteDance’s aggressive pricing for new AI-driven workloads poses a growing threat to Alibaba’s dominance in Greater China.

With Alibaba’s fiscal-third-quarter earnings release scheduled for later this month, investors are closely watching metrics such as active consumer accounts and core e-commerce margins. Consensus estimates point to 10% year-over-year net-commerce revenue growth and a modest expansion in non-IFRS operating margin, reflecting management’s efforts to rein in marketing spend and integrate its new retail partnerships.