Alibaba’s Marquee Business Shrinks Amid Consumer Malaise
- Net income dived 27% as spending on promotions ballooned
- Commerce shrank in a worrying sign for Chinese consumption
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Alibaba Group Holding Ltd. posted an anemic 4% rise in revenue after its Chinese commerce business shrank for the first time in at least a year, driving home the malaise plaguing the world’s No. 2 economy and its leading online retailer.
The company’s profit plunged 27%, dispelling hopes of a quick turnaround at the company that pioneered Chinese e-commerce two decades ago. Alibaba’s American depositary receipts dropped at the start of trading in New York before rising about 2% with a broad market rally.