Signage for Alibaba Group Holding Ltd. shown at the company’s headquarters in Hangzhou, China, on Wednesday, November 10, 2021. Alibaba’s annual 11.11 Singles’ Day online shopping bonanza, attracting hundreds of millions of people worldwide, is a quieter affair this year as the e-commerce giant seeks to turn around the focus away from increasing sales and more towards sustainability and philanthropy ̵[ads1]1; the key pillars of President Xi Jinping’s commitment to reshaping China’s economy.
Qilai Shen | Bloomberg | Getty pictures
GUANGZHOU, China – Alibaba on Thursday missed revenue and revenue expectations for the September quarter, as declining economic growth in China and the country’s intervention in technology companies weighed on results.
Here is how Alibaba performed in its fiscal second quarter, versus Refinitive consensus estimates:
- Revenue: 200.69 billion yuan ($ 31.4 billion) against the estimated 204.93 billion yuan, an increase of 29% from year to year.
- EPS: 11.20 yuan vs. 12.36 yuan estimated, a decrease of 38% from year to year.
Alibaba has been a victim of China’s intervention in its domestic technology industry, which has seen a number of new regulations from antitrust to data protection.
While China’s technology giants have grown largely unhindered in recent years, Beijing has sought to clean up some of its corporate behavior. Alibaba was fined $ 2.8 billion in April as part of a monopoly investigation.
Meanwhile, China’s economy slowed in the third quarter of the year.
Expectations were low when they entered the second quarter results report as a result, with analysts expecting it to be one of the most challenging quarters ever for the Chinese e-commerce giant.
The company comes from the back of Singles Day, a major shopping event in China where e-commerce platforms offer huge discounts and raise billions of dollars in sales.
Alibaba collected gross goods during the 11-day period totaling 540.3 billion yuan ($ 84.54 billion). Any income Alibaba receives from this event will not be reflected in the September quarter.
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