Alibaba shares rose 2.8% on Friday, as the Internet giant reported strong earnings, but it also lost ground to the broader market.
The stock has been struggling since late 2014 when Alibaba announced plans to acquire a majority stake in American internet giant Microsoft, which was also acquiring its rival Tencent for $400 billion.
The Alibaba group had struggled with the merger and a lack of competition, and it lost money on the deal.
On Friday, Alibaba posted net income of $1.5 billion, or 59 cents per share.
That was down from 59 cents a share in the same period last year.
The company also reported adjusted earnings of 66 cents per cent, or $4.11 billion.
Analysts surveyed by FactSet had expected adjusted earnings to rise to 66 cents a cent.
Analytically, the stock is trading at a discount to the market as investors try to decide whether the acquisition is a good deal or a bad one.
The share market, which has risen from around 2,200 on the day Alibaba filed the deal with the U.S. Securities and Exchange Commission, jumped 8.4% to a record high of 9,919.
Alibaba shares are up more than 10% since the start of the year, and the stock has gained more than 5% this year.