What's Going On With Alibaba Stock Tuesday?

Alibaba Group Holding BABA cloud computing arm Alibaba Cloud issued an apology following a service outage that caused the suspension of its Taobao online shopping platform and other major Alibaba applications on Sunday. 

This incident represents the second significant system breakdown for the company in under a year.

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The company, which aims to go public by May 2024, reported a revenue growth of 4% in the June quarter, compared to the group’s 14% revenue growth.

The Chinese cloud services provider detected anomalies in its console and application programming interface at 5.44 pm but restored all services by 9.11 pm, SCMP cites from company note.

The service breakdown hit some of Alibaba’s most popular apps, including workplace communications tool DingTalk, second-hand-goods trading platform Xianyu, and online marketplace Taobao. These apps resumed all services around 7.20 pm.

Alibaba Cloud is a primary service provider for the Chinese technology industry, with 80% of the nation’s tech companies and half of its large AI model firms running on Alibaba’s cloud infrastructure.

The service breakdown on Sunday came after Alibaba Cloud’s Hong Kong and Macau operations suffered a prolonged system failure last December.

Price Action: BABA shares traded higher by 0.89% at $83 on the last check Tuesday.