Alibaba’s First Sales Miss in Two Years Shows Crackdown Toll

  • Daniel Zhang advocated opening up internet app ecosystems
  • Jack Ma’s firm is seeking to look past its regulatory woes
WATCH: Alibaba’s revenue missed estimates for the first time in more than two years on its latest earnings report. Bloomberg’s Stephen Engle reports. (Source: Bloomberg)
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Alibaba Group Holding Ltd.’s revenue missed estimates for the first time in more than two years, underscoring how Beijing’s months-long campaign against the internet sector is taking a toll.

Growth slowed in most of Alibaba’s major divisions from cloud to e-commerce, underlining fears that the mounting list of new government regulations is constraining expansion and increasing companies’ burdens. In a sign of the times, Chief Executive Officer Daniel Zhang on Tuesday endorsed a string of government policies enacted during a tumultuous 2021, from strict curbs on data collection to excessive subsidies. In particular, he voiced support for a six-month campaign kicked off last week by the internet industry overseer that expressly called out the blocking of rivals’ services.