Alibaba’s Marquee Business Shrinks as Domestic Demand Falters

(Bloomberg) — Alibaba Group Holding Ltd. posted an anemic 4% rise in revenue after its Chinese commerce business shrank for the first time in at least a year.

Its shares slid more than 2% in premarket trading in New York, as a 27% drop in profits spooked investors already nervous about the health of the Chinese consumer. The weak results dispelled hopes of a quick turnaround at the company that pioneered Chinese e-commerce two decades ago.