China's Alibaba Beats Quarterly Revenue Estimates, Profit Drops

Reuters05-14

May 14 (Reuters) - China's Alibaba Group Holding beat analysts' estimates for fourth-quarter revenue on Tuesday, as a focus on low-cost goods in response to cautious consumer spending helped boost domestic e-commerce sales in the three-month period.

Its U.S.-listed shares, however, fell 6.1% in morning trading, as profit fell about 86% in the fourth quarter.

Consumers in China have been spending carefully after the pandemic amid an economic slowdown and property slump.

Analysts expected strong growth from Alibaba's international digital commerce arm, given its investments in building global market share and appetite among global consumers for low-cost goods from China.

Analysts expect a 39% revenue rise in the segment, according to LSEG data.

The company reported revenue of 221.87 billion yuan ($30.66 billion)in the three months ended March 31, compared with a consensus estimate of 219.66 billion yuan, according to LSEG data.

Net income in the March-quarter was 3.27 billion yuan ($451.94 million), compared with 23.52 billion yuan a year ago.

($1 = 7.2355 Chinese yuan renminbi)

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Comments

  • Nawei
    05-15
    Nawei
    Buy the dip, wait for recovery. 
  • Max87
    05-14
    Max87
    Baba is back on fire🔥 looking forward to the next. Hipefully its meteor ☄️  phewitt 
  • MartinOng
    05-14
    MartinOng
    To Your surprise, it will be UP. 
  • Pilates
    05-14
    Pilates
    Ha! @Bonta 🥲🥲🥲🥲
    • Pilates
      Lol baba never fails to drop after earnings. Lol hahahahhahahaa
    • Bonta
      Ya. Thats y i mentioned about the reversal. But then option selling is management of risk. Focus on many small gains is better than making big bets. [Cool]
  • Terryhuat
    05-14
    Terryhuat
    Great article, would you like to share it?
  • Andrewinho
    05-14
    Andrewinho
    Great!! 👏👏👏👏👏
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