What's going on?

Alibaba�s underwhelming results, out on Thursday, suggested the firm�s hit a dead end � but its listing plans could help it reverse.

What does this mean?

China�s economy might be dusting itself off, but spending on physical goods (real, tangible things) seems to be on an extended sabbatical � and that�s stoking fears that the country�s long-awaited consumer spending boom could still be miles off. That cold spell might explain why Alibaba � which earns most of its money from Chinese commerce � saw single-digit revenue growth again last quarter, falling just shy of analysts� estimates. But it�s not all woe: Alibaba thinks online commerce is starting to shake off the cobwebs now, with a healthy appetite for fashion and healthcare products helping domestic momentum speed up in March.�

Why should I care?

Zooming in: A bumper breakup.
Investors have been perched on the edge of their seats ever since Alibaba announced it�s splitting into six distinct business units. And that�s no wonder: this shift could make the individual segments more nimble � potentially turbo-charging growth, and maybe even triggering a share rebound. That prospect meant analysts were pretty gung-ho when the firm announced a spin-off plan for its $12 billion cloud business, the nation�s biggest: after all, there�s every chance the venture could be a success, especially if the booming demand for Tongyi Qianwen, Alibaba�s answer to ChatGPT, is anything to go by.�

For markets: The Big Long.
Chinese stocks are in a bit of a freeze right now, with investors getting cold feet as the country�s rebound slows: in fact, average foreign trading volumes are currently less than a tenth of January�s record highs. But some true contrarians are backing the country. Filings out this week showed that Michael Burry � the man who accurately predicted the global financial crisis � has seriously upped his bets on Alibaba and JD.com.