The Alibaba Group, bellwether for Chinese consumers sentiment, reported earning today.
Alibaba sees China retail volume growing near pre-pandemic levels but stock falls amid U.S.-China tensions
Alibaba sees China retail volume growing near pre-pandemic levels but stock falls amid U.S.-China tensions
- Alibaba Group Holding Ltd. said that volume on its China retail marketplaces was back to growing at near pre-pandemic rates, but its shares dropped about 4% in Friday morning trading on a weak day for Chinese internet stocks given new fears about U.S.-China relations.
- The Chinese e-commerce giant reported better-than-expected results for its March quarter before the opening bell, clearing a lowered bar after the COVID-19 crisis pressured its business and prompted analysts to lower their forecasts in the months leading up to Alibaba’s report.
- Chief Executive Daniel Zhang said on the company’s earnings call that Alibaba saw “signs of recovery in certain major markets starting in April” but that the business also faces “uncertainties.”
- Among the positive points is that gross merchandise volume since the start of April has shown “year-on-year growth at a similar rate to the December quarter’s level,” Zhang said. Alibaba saw a 8% decline in revenue from its local consumer services businesses, but volume growth for the company’s food-delivery business swung into positive territory during April.
- Alibaba () reported quarterly results before the market open Friday that beat estimates as total gross merchandise volume for the year hit a record $1 trillion.
- The China e-commerce giant reported adjusted earnings of $1.30 per share, up from $1.28 a year earlier. Revenue grew 22% in local currency to $16.14 billion. Wall Street expected earnings of 85 cents on revenue of $15.1 billion. The results were for its fiscal fourth quarter for the period ended March 31.
- The company said it expects revenue of $91 billion in fiscal 2021. But it cautioned, "It is not possible to determine the ultimate impact of the Covid-19 pandemic on our business operations and financial results."
Last edited: