The Chinese e-commerce giant was hurt by softness in the retail market and China's weak economic recovery.

On Wednesday (February 7), the company reported revenue of nearly $36.7 billion for the three months ended Dec. 31, slightly below analyst predictions.

Alibaba is under pressure from slow growth in China's online shopping market following the end of health crisis restrictions.

Consumers in the world's second-largest economy have cut costs in response to the slow recovery.

That has helped more low-cost domestic players like PDD Holdings, which own Pinduoduo.

It has also led Alibaba to focus more on discounting and lower-priced goods.

However, Alibaba did announce an increase of $25 billion to its share repurchase program through the end of March 2027.

Last year, Alibaba announced the split of its business into six units.

Group CEO Eddie Wu will help oversee the move.

Wu took over the role in September.

He has told staff the company's strategic focuses would be "user first" and "AI-driven" as it fights slower earnings growth.