Shares in Alibaba lost almost 50% of their value in 2021 amid intensifying regulatory pressures and concerns around slowing growth. 

Over the last four trading days however, Alibaba rose 11.4% with some investors believing that the stock is trading at attractive valuations. On the back of Alibaba stock gain in the last four days.

Enhancing service quality through integrating Taobao and Tmall units

In company news, Alibaba announced plans on January 6 to fully integrate the back end of Taobao and Tmall units to pursue more seamless operations and better service quality within its core online marketplaces. This integration could bring incremental efficiency and cost savings down the road. 

Alibaba’s plans to streamline its online businesses come on the back of recent data which show slowing Chinese online consumption and that retail sales decelerated sharply in November. This trend may hit Alibaba harder than peers, because the group is more reliant on discretionary spending on the likes of cosmetics. Slowing revenue growth has also been reflected in Alibaba’s blockbuster Singles Day sales event as part of the broader trend.

Alibaba will be reporting its third quarter earnings result on 2 February 2022. While trimming earnings estimates on the company, Macquarie Research maintains its Outperform rating on Alibaba shares.