NEW YORK (TheStreet) -- Alibaba (BABA) stock is decreasing by 5.54% to $66.20 in late-morning trading on Wednesday, as concerns surrounding China's markets overshadow the company's partnership with chip maker Nvidia (NVDA) to work on cloud computing and artificial intelligence projects.
China's Shanghai Composite Index closed 1.03% lower today amid concerns about the country's economic well-being.
Separately, AliCloud, Alibaba's cloud computing subsidiary, will invest $1 billion in data analysis and machine learning, and plans to hire roughly 1,000 developers over three years for its big-data platform, Bloomberg reports.
AliCloud hopes demand for processing and storage from governments and businesses can propel growth during the next decade, thereby increasing its competitiveness with e-commerce giant Amazon.com (AMZN), according to Bloomberg.
Alibaba has previously demonstrated interest in cloud computing. In October, the company announced that it would open its second Silicon Valley data center to meet rising cloud demand.
China's e-commerce market could expand to $1.5 billion by 2020, according to Bain, underscoring the need for information processing, Bloomberg notes.
Alibaba is a Hangzhou, China-based online and mobile commerce company.
Separately, TheStreet Ratings team rates Alibaba as a "hold" with a ratings score of C-.
Alibaba's strengths include its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, these strengths are tempered the stock's generally disappointing performance in the past year.
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TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.BABA data by YCharts