What: As Alibaba grapples with an anti-monopoly crackdown and the economic downturn, the company posted a third-quarter report showing an exorbitant net loss.

Why it is important: Alibaba is seen as a reflection of Chinese consumer sentiment, making its Q3 results of -2.89 billion dollars seem like more than simply a decrease in market prices of equity investments, which was the excuse Alibaba provided shareholders.

Revenue for the three months was up 3% year-on-year at 207.2 billion yuan, but after posting flat quarterly revenue, the company laid off a number of employees, with its headcount down more than 1,700 from the previous quarter.

Alibaba is also the focus of regulatory crackdowns in China and sits on a US watchlist, causing shares to slump.

Alibaba reports loss of USD 2.89 billion