Last year, Alibaba founder Jack Ma faced summons from the Chinese authorities when they suspended the listing of Alibaba’s fintech arm Ant Group.
With that, Alibaba’s shares started sinking and authorities urged a restructure of its fintech business. The stock remains 43 percent lower than its October 2020 peak.
According to a Wall Street Journal report, Alibaba’s share of China’s retail e-commerce market has fallen from 78 percent in 2015 to a projected 51 percent in 2021.
However, the recent reports that Ma was in Europe have led to a 6 percent jump in the company’s shares.
Alibaba is facing growing competition in the market as well.
A shift in the consumer shopping format moving from search to browsing has worked against Alibaba.
In May, Chief Executive Daniel Zhang named increased competition as one of the company’s biggest obstacles of the past year.
“Any profit that exceeded last year’s would be poured back into improving its e-commerce businesses,” Zhang said.
Alibaba is investing more in content creation, live-streaming, and discount goods to gain momentum and tap this area.
Alibaba is set to report earnings on Nov. 5.
By Bibhu Pattnaik
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