Consider signing up for CNNs Meanwhile in China newsletter to stay updated on the country's growth and its global impact. Alibaba's founder, Jack Ma, is advocating for "change" in response to strong competition within his e-commerce company.
The billionaire responded to a recent surge in PDD (PDD) stock, the company behind Chinese online shopping giant Pinduoduo and US-based retail upstart Temu, following PDD's impressive third-quarter earnings report. Revenue increased by 94% to 68.8 billion yuan ($9.7 billion), and operating profit rose 60% year-on-year to nearly $16.7 billion (about $2.3 billion).
The company's stock in New York surged dramatically, rising 18% on Tuesday and another 2% on Wednesday. As a result, PDD's market cap reached $188.3 billion, only slightly below Alibaba's $189.9 billion.
Alibaba employees have been paying attention. According to a source, in a post on the company's internal forum on Wednesday, a staff member mentioned that PDD was approaching the Hangzhou-based group, which prompted Ma to comment. "Please provide us with more constructive feedback and suggestions, especially innovative ideas. I believe that all Alibaba employees are watching and listening," he wrote in a comment, as reported by the source.
Ma praised PDD for its impressive recent performance and expressed his belief that the era of AI e-commerce is just starting, presenting both an opportunity and a challenge for all. He also stated his firm belief that Alibaba would undergo transformation and urged everyone to embrace change and be willing to make sacrifices for the future. He called on Alibaba's employees to refocus on the company's mission and vision and to push forward with determination.
The whereabouts of Jack Ma, the founder of Alibaba, have been unknown since the end of October. The entrepreneur was called in by authorities following a speech that criticized the Beijing regime. -- File -- Founder and CEO of Alibaba Jack Ma is interviewed by Maurice Levy in the VivaTech Exhibition in Palais des Expositions of Porte de Versailles, Paris, France on May 16th, 2019. Photo by Henri Szwarc/Abaca/Sipa USA(Sipa via AP Images)
Henri Szwarc/Abaca Press/Sipa/AP
Jack Ma backs off on plans to sell Alibaba shares after stock plunge
In 1999, Ma established Alibaba and later resigned as chairman in 2019 prior to facing backlash from Chinese authorities for his criticism of the country's financial regulators and banks. Since then, he has maintained a low profile while still holding shares in Alibaba. The company's shares have fallen by 15% this year due to ongoing concerns about restructuring, leadership changes, and increased competition.
PDD has had a very successful year, with chairman and co-CEO Chen Lei crediting part of their results to the recovery of the Chinese economy. In addition to their success in China, PDD has gained international recognition for the launch of Temu, an affordable online superstore that has become popular in markets like the United States and Australia. Temu offers a wide range of products, from home goods to apparel and electronics.
