Alibaba’s share price falls as competitor shows success

When you’re down, the last thing you want to hear is your neighbor talking about how well they’re doing. This is roughly the situation Alibaba finds itself in with respect to rival PDD Holdings.

Ali Baba is trying to convince investors of its strategy after the company dramatically abandoned a plan to spin off its cloud computing unit, apparently hit by US scrutiny.

Ali Baba shares fell 2.35% to $74.94 before the market opened on Wednesday. This year, the share price has recovered by almost 18%.

Meanwhile PDD, Pinduoduo and Ago owner of retail platforms, surprised investors with strong revenue growth, especially in the US and other international markets, according to Barron’s.