What's going on?

Alibaba reported worse-than-expected results on Thursday, after the ecommerce giant was stabbed in the back by someone it thought it could trust�

What does this mean?

Alibaba�s own government has been punishing it in the last year, cracking down on the company alongside a host of other tech giants. That, as it�s been trying to sell products to shoppers who are shopping less, and as rival companies like Pinduoduo, JD.com, and TikTok-owner ByteDance sit hot on its heels. There was no rising from the ashes here: Alibaba�s revenue grew by a worse-than-expected 10% last quarter compared to the same time the year before. That�s its slowest since the company listed on the stock market in 2014, and a long way from the 40%-plus growth it boasted before China brought down its iron fist�

Why should I care?

For markets: Hits from all angles.
Those crackdowns have now spread beyond the tech sector to industries like education and property. You�d think Alibaba would be relieved with the shift in focus, but it�s an investor as well as an ecommerce business. And since it�s so heavily invested in those areas, its portfolio has taken a serious bruising. That�s a big part of why the company�s profit fell 74% last quarter from the same time the year before.

The bigger picture: Misery loves company.
The crackdowns also forced fintech giant Ant Group � a third of which is owned by Alibaba ��to call off what would�ve been the world�s biggest initial public offering back in 2020. That means Alibaba�s been left holding some toxic shares: Ant Group was caught up in a corruption scandal last month, and Bloomberg reported this week that China�s ordering the biggest state-owned banks to see if their finances are tied up with the firm. If those businesses are forced to cut those ties, it could seriously hurt Ant Group�s bottom line � and Alibaba�s too.