Alibaba Group Holding saw its stock fall more than 3% on Monday as investors pared back risk exposure in response to renewed U.S. tariff threats tied to the Greenland dispute. The sell-off trimmed Alibaba’s market capitalization by roughly $15 billion in a single session, marking its largest one-day drop since early October. The decline came despite the company’s recently reported 29% year-over-year revenue growth for its cloud computing division, underscoring how geopolitical factors are weighing more heavily than underlying fundamentals in the near term. Analysts at JP Morgan reduced their near-term target price, citing heightened trade uncertainty and the potential for broader market contagion in Asia.

Alibaba’s fast-delivery business posted a 60% year-over-year increase in revenues during the most recent quarter, driven by expanded coverage in second- and third-tier cities and promotional partnerships with over 120 retail brands. However, the division’s gross margin fell to 8.4%, down from 12.1% a year earlier, as heavy subsidies for consumer discounts and rising logistics costs ate into profitability. Management noted that while customer engagement metrics—such as average monthly orders per user rising to 9.3 from 6.7—remain strong, the unit will require continued scale gains and optimized delivery networks to approach break-even. Investors will be watching whether Alibaba can leverage its existing Cainiao logistics arm to curb unit economics pressure before the end of 2026.