The stock fell about 1% during early trading on Thursday, but it is still more than 20% up until 2020.
“While the global community continues to struggle with uncertainties surrounding the pandemic, we have seen signs of recovery in China due to effective management of the outbreak in vast majority of the country,” Alibaba President and CEO Daniel Zhang said during an interview with analysts.
During the conference meeting with analysts, Zhang acknowledged that Alibaba was dealing with “uncertainties of not only the global pandemic, but also growing tensions between the US and China.”
“We are keeping a close eye on the recent shift in US government policy towards Chinese companies, which is a very fluid situation,” Zhang added. “We are assessing the situation and any potential impact carefully and in depth and will take necessary actions to comply with new regulations.
Alibaba does not have a large retail presence in the United States. But a growing number of small businesses in America are using Alibaba’s cloud services to set up their own digital commercial operations.
Zhang demonstrated his cloud management – and how that helps U.S. companies – during the conference call.
“As the largest e-commerce platform in the world, Alibaba’s primary commercial focus in the US is to support US markets, retailers, small businesses and farmers to sell to consumers and trading partners in China, as well as the other major markets. all over the world, ”Zhang said.
“We believe that global trade will continue, and Alibaba’s active pursuit of our mission to make it easy to do business anywhere is fully in line with the interests of both China and the United States,” he added.
However, US Secretary of State Mike Pompeo said earlier this month that US companies should be aware of “untrusted” Chinese technology. He said it was dangerous to have too much information about intellectual property stored in cloud networks operated by Alibaba and other Chinese companies.
However, Zhang already pointed out that Alibaba has a great opportunity in the Chinese cloud market, which is still in its early stages and has the potential to grow faster than cloud computing in the United States.
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