Alibaba Shares Tumble 7% on Disappointing Sales and Suspended IPO Plans for Cainiao and Freshippo

Alibaba shares plunged by up to 7% in Hong Kong as the Chinese tech giant reported disappointing sales figures and suspended IPO plans for its logistics arm, Cainiao, and grocery chain, Freshippo.

Chairman Joseph Tsai cited challenging market conditions, stating that the current environment doesn't reflect the true value of these businesses. The setback follows a December reshuffling of top ranks after a competitor's strong performance stirred concerns. Co-founder Jack Ma called for reforms, urging employees to "pay any price and sacrifice." Alibaba's quarterly earnings of $36.7 billion, a 5% increase YoY, fell slightly below analyst expectations.

Net income plummeted 77% to just over $2 billion due to decreased operational income. The company's $25 billion share repurchase program failed to boost investor interest, with New York-listed shares closing 5.9% lower. Since its restructuring in March 2023, Alibaba's shares have lost 25% of their value.