China’s internet giant Ali Baba (BABA) early Thursday reported results for the September quarter, which beat earnings, but showed another quarter with weak earnings development. Nevertheless, BABA shares jumped.
The e-commerce company reported adjusted earnings of $1.82 per share in the US 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 were for the second quarter of the financial year, which ended on 30 September. Year-on-year, Alibaba’s earnings rose 15% while sales rose 3%. In the previous quarter, revenues fell by 4%.
For years, Alibaba consistently reported double-digit revenue growth as one of China’s fastest-growing Internet companies. But strict Covid-19 lockdowns amid burdensome government regulations and a deteriorating global economy have hampered business. In addition, Alibaba has been hurt by supply chain problems and rising logistics costs.
BABA share action
BABA shares jumped 7.8%, ending at 84.26 on the stock market today.
“The uncertainty in the global landscape has only reinforced our resolve to focus on building capacity 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 with Alibaba. Alibaba earnings release.
In the past year, the BABA share has fallen 35%.
Other Chinese tech companies reporting this week include Tencent Holdings (TCEHY) on Tuesday and JD.com (JD) on Friday. Tencent reported third-quarter earnings that topped estimates, but sales were a tad light.
Earlier this week, BABA shares and shares of other Chinese internet companies such as JD.com, Tencent and Baidu (BIDU) got a boost after reports that President Joe Biden and Chinese leader Xi Jinping held constructive talks on business and political issues at the G20 summit in Bali.
Follow Brian Deagon on Twitter at @IBD_BDeagon for more on technology stocks, analysis and financial markets.
YOU MIGHT ALSO LIKE:
Is Alibaba stock a buy?
Best China Stocks to Buy and Watch
IBD’s ETF Market Strategy
Best growth stocks to buy and watch: See updates to IBD stock lists
Looking for the next big stock market winners? Start with these 3 steps