This downturn follows a series of challenges, including a leadership change, a restructuring plan facing obstacles, and a regulatory crackdown by Beijing that began three years ago, the Wall Street Journal reports.

Alibaba's stock, which soared following its 2014 IPO, has now lost most of those gains, trading near its IPO price. 

Alibaba focuses on content creation, livestreaming, and offering budget-friendly items to counter these trends. 

Despite restructuring into six business units for better agility, Alibaba confronts stiff competition and a weak economy. 

Additionally, the company's cloud unit growth has slowed, and it plans to spin off this unit and halt listing its supermarket unit.

Alibaba has also cut over 20,000 jobs in the last six quarters, emphasizing efficiency and profits. 

In online retail, Alibaba's market share has dropped significantly, facing competition from companies like PDD that blend low prices with entertainment. 

PDD's revenue growth has far exceeded Alibaba's, highlighting the latter's struggle to adapt to market changes. Despite these challenges, Alibaba's co-founder, Jack Ma, remains optimistic about the company's ability to adapt and evolve.

Alibaba stock has lost 22.3% year-to-date, while PDD has gained 68%.

Price Action: BABA shares traded higher by 0.73% at $72.02 on the last check Thursday.