From CNBC:

Alibaba Group has faced a challenging year as its cloud computing unit was positioned to benefit from AI growth. The company’s U.S. market value has fallen, cloud IPO plans were scrapped, and an internal struggle is evidenced by a management shakeup and plummeting stock prices. The Chinese crackdown on tech companies, a slowing economy, and competition from domestic platforms like Douyin have added to Alibaba’s challenges.

Competition in the cloud business from companies like Huawei is growing, with Huawei gradually increasing its market share in China’s cloud market. Alibaba seems to be struggling to keep up with competitors like Huawei, whose engagement strategy with business partners is paying off in a slowing market driven by government and state-owned enterprises. Alibaba has experienced minimal cloud revenue growth, prompting an internal struggle to attract and retain clients.

Alibaba’s struggles have also been reflected in the global IPO market, with difficulties listing the company’s cloud unit overseas. The company was valued at less than $25 billion by an international investment firm, which was far below the $40 billion initially sought by Alibaba. However, despite the challenges, some believe that Alibaba still has the potential to succeed with its valuable customer base and data, as well as the talent within the organization.



Read more: Alibaba was once a Wall Street darling. What’s next?