The last time Alibaba shares came to attention was in August, where there was a jump of up to 3.57% after it was rumored to be removed from Taiwan.
It was recently reported that the Chinese giant is facing a critical phase with a total of 750 million active users in the country.
The situation demands that the firm no longer focus on its own national market alone, instead need to look for opportunities outside of China and in Southeast Asia.
According to the study director at D. A. Davidson, Gil Luria, Southeast Asia has the potential to ‘revive’ the business in the longer term.
Latin America and Africa, for example, still have room for the growth of e-commerce technology under Chinese influence. Meanwhile, Alibaba is already known around Southeast Asia through the Lazada platform, with the majority ownership of its shares.
While for the firm to penetrate the markets of Western Europe and the United States (US) is very impossible due to the policy and perception of the data.
Undoubtedly, the China-US dispute does not directly involve Alibaba, unlike WeChat, TikTok and Huawei.
However, the coldness of the two countries has put the firm as a victim when AntFinancial failed to buy U.S. money transfer company MoneyGram after the Committee on Foreign Investment in the United States (CFIUS) rejected the request due to national security issues.
For now, Alibaba revenue is mostly from retail businesses that include shopping platforms like Taobao and Tmall, including online-to-offline retail business networks.
