- Alibaba Group Holding Limited (NYSE:BABA) shares are trading lower Tuesday following China’s disappointing retail and factory output data, further adding to the investor woes.
- Activity indicators for April missed expectations, adding pressure to policymakers over the pandemic recovery, even as interest rates rise elsewhere, Reuters reports.
- Separately, Alibaba’s cloud services unit is doling out discounts of up to 40% and technical support to its overseas partners.
- Alibaba Cloud proposes to boost its “global partnership ecosystem” via new initiatives, including launching a training empowerment program for partners and financial incentives to reward partners, SCMP reports.
- Alibaba chairman and CEO Daniel Zhang Yong helmed Alibaba Cloud was mainland China’s top cloud infrastructure services provider in 2022. Still, its revenue growth has slowed amid competition from Huawei Technologies Co and China Telecom.
- As per IDC, Alibaba Cloud’s market share in China dropped to 32.6% in the second half of 2022 from 34.5% in the first half.
- In April, Alibaba Cloud shared its plans to cut prices of its core products and services in China by up to 50% starting May 7.
- However, Alibaba Cloud’s overseas expansion plan is also facing challenges. Lately, the U.S. has cracked down on Chinese cloud service providers.
- Republican senators urged the U.S. government to impose sanctions on Huawei Cloud and other Chinese cloud service providers, citing national security and data privacy concerns.
- Alibaba Cloud’s overseas push coincided with the broad restructuring of the Alibaba Group and a potential price war among cloud service providers.
- Price Action: BABA shares traded lower by 1.39% at $87.11 premarket on the last check Tuesday.
- Photo via Wikimedia Commons
Fear & Greed Index Moves To ‘Fear’ Zone; S&P 500 Down Over 1%
The CNN Money Fear and Greed index showed a decline in the overall market sentiment, with the index moving to the "Fear" zone on Monday.
U.S. stocks closed lower on Friday amid concerns over the conflict in the Middle East, with the S&P 500 falling more than 1% during the session.
