Chinese Internet giant Ali Baba (Baba) announced early Thursday results for the September quarter that beat earnings but showed another quarter of weak revenue performance. However, BABA stock jumped.
The e-commerce company reported adjusted earnings of $1.82 per share on revenue of $29.12 billion. Analysts expected Alibaba to report earnings of $1.70 per share on revenue of $29.6 billion. The results are for the second quarter of the fiscal year ending September 30th. On a year-over-year basis, Alibaba’s profits were up 15% while sales were up 3%. In the previous quarter, revenue decreased by 4%.
For years, Alibaba has consistently reported double-digit revenue growth as one of the fastest growing Internet companies in China. But strict Covid-19 lockdowns amid onerous government regulations and a crumbling global economy have hampered its business. In addition, Alibaba has been hit by supply chain problems and increased logistics costs.
BABA Stock’s work
BABA shares jumped by 7.8%, closing at 84.26 on the day stock market today.
“Uncertainties in the global landscape have strengthened our resolve to focus on building capabilities that will deliver sustainable, high-quality growth for our customers and our own business over the long term,” Alibaba CEO Daniel Zhang said in a statement. Alibaba earnings release.
In the past year, BABA stock has fallen 35%.
Other Chinese tech companies reported this week include Tencent Holdings (TCEHY) on Tuesday and JD.com (Dinar) Friday. Tencent reported Third quarter earnings which exceeded estimates, but sales were light.
Earlier this week, shares of BABA and other Chinese Internet companies such as JD.com, Tencent, and Baidu (Bedo) got a boost after reports that President Joe Biden and Chinese leader Xi Jinping had constructive talks on business and political matters at the G-20 summit in Bali.
Please follow Brian Deagon on Twitter at @employee Learn more about technical stocks, analysis and financial markets.
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