Alibaba Co-Founder Jack Ma (BABA), who stepped away from day-to-day operations of the company in 2020, surprised employees by replying to a staff post on Alibaba’s internal forum. Ma urged the company to go through a course correction, pointing towards, and praising, e-commerce competitor PDD Holdings Inc. (PDD). Yahoo Finance Anchors Seana Smith and Brad Smith break down the latest development with the company and what it means moving forward. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Alibaba Group (NYSE: BABA) stock marked its fourth straight day of declines on Wednesday, falling another 2.6% through noon ET. Yesterday, we took a look at Alibaba's announcement that it's closing down its quantum computing research business, boxing up its equipment, and donating it all to Zhejiang University rather than continue losing money on the project. Management has previously blamed "U.S. restrictions on export of advanced computing chips" for its inability to make sufficient progress in quantum computing and artificial intelligence to justify the expense.
Shares of PDD Holdings (NASDAQ: PDD), a Chinese e-commerce company and owner of discount-priced sites Pinduoduo and Temu, were climbing for the second day in a row today. Today's gains came one day after the stock soared on a blowout earnings report, seeing strong revenue growth even in a difficult economic environment. The stock was gaining on Wednesday as several Wall Street analysts raised their price targets on the stock and as Alibaba co-founder Jack Ma called out the threat from Pinduoduo in an internal company post.