What:  In spite of a record fine, Alibaba claims its fundamentals are still valid and efficient.

Why it is important:  Within all dangers that Alibaba might have to face, a state clampdown on data management would be a blow for the group which based its business model on a very efficient data management process.

Alibaba has announced a record loss of EUR 975 million for Q1 2021, due to a fine of EUR 2.3 billion (4% of its total turnover) for anti-commercial practices. Without this fine, Alibaba claims it would have posted a profit of EUR 3.3 billion, and aims at convincing markets that the worst is now over.

There are however some issues that will need a further resolution:

• The group’s financial arm, Ant, is still struggling with regulators,
• Beijing’s approach to data, and potentially constraining regulation,
• The future of the group’s media empire.

Alibaba aims at achieving a turnover of EUR 119.2 billion in 2021, +32% vs. 2020 and the double of 2019.

After $260 Billion Slide, Alibaba Aims to Show the Worst Is Over