Trading Concept
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Trading Concept
No Result
View All Result
Home Trading News

Alibaba Stock Is Tumbling After a Bad Earnings Miss and Slashed Sales Outlook

by
November 18, 2021
in Trading News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter
Text size

Alibaba stock was falling after the e-commerce giant’s earnings fell short.

Greg Baker/AFP via Getty Images


Alibaba

stock was tumbling Thursday after the Chinese e-commerce giant’s quarterly results fell well short of expectations and the company cut its sales outlook for the full year.

U.S.-listed shares of Alibaba (ticker: BABA) fell near 5.5% in premarket trading Thursday. The stock has declined almost 30% this year amid a broad crackdown by Beijing on Chinese technology companies.

RELATED POSTS

NBA and players reach a deal for a new 7-year labor agreement

D.E. Shaw spots an opportunity to boost margins at FleetCor – and do so amicably


Alibaba

‘s Hong Kong-listed shares (9988.H.K.) slipped 5.3% Thursday ahead of earnings.

In the three months ended Sept. 30, which Alibaba reports as its second fiscal quarter, the company notched sales of $31.1 billion. Earnings before interest, taxes, and amortization—the preferred adjusted measure of profits—was $4.4 billion, delivering earnings per share of $1.74.

Wall Street’s expectations were for sales to be slightly below $40 billion, with earnings of $4.9 billion delivering EPS of $1.86.

The group also slashed its revenue outlook for the full year. In May, Alibaba projected more than 930 billion Chinese yuan ($146 billion) in sales for the year ending March 2022—which would represent nearly 30% year-over-year growth. It has now cut that figure starkly, projecting revenue to grow 20% to 23%.

Alibaba has an issue with declining profitability from last year. Margins in the quarter, as measured using its adjusted earnings metric, collapsed by almost one-half from the year-ago period—from 27% to 14%. Pressure on profits was most pronounced in Alibaba’s core commerce segment, where margins slipped from 35% to 19%. The company blamed that on investment in strategic initiatives and the consolidation of an acquisition into its financial reporting.

“This quarter, Alibaba continued to firmly invest into our three strategic pillars of domestic consumption, globalization, and cloud computing to establish solid foundations for our long-term goal of sustainable growth in the future,” Daniel Zhang, the group’s chair and CEO, said in a statement. 

“Our global annual active consumers across the Alibaba Ecosystem reached approximately 1.24 billion, with a quarterly net increase of 62 million consumers,” Zhang added. “We are on track to achieve our longer-term target of serving two billion consumers globally.”

Alibaba last week reported that it smashed its previous sales record for the two-week Singles Day event, China’s version of Black Friday and the world’s largest shopping spree.

As one of the world’s largest technology companies and a Chinese corporate heavyweight, Alibaba’s results are closely watched on their own merits. But they are also an important indication of sentiment among Chinese consumers, and, in turn, the strength of the world’s second-largest economy.

While Alibaba’s results disappointed the market—indeed, earnings fell 32% from 2020 levels—they don’t signal overt weakness in Chinese consumption trends. Though revenue fell short of Wall Street’s expectations, Alibaba’s sales remain 29% higher year-over-year. Even adjusting for the consolidation of Sun Art—a Chinese big-box retailer Alibaba acquired in the last year—sales would have shot up 16%.

Competitor


JD.com

(JD) reported a more than 25% jump in third-quarter revenue Thursday, sending the stock 2.5% higher in premarket trading.

Write to editors@barrons.com

ShareTweetPin

Related Posts

NBA and players reach a deal for a new 7-year labor agreement

by
April 1, 2023
0

NBA Commissioner Adam Silver speaks to the media during a press conference as part of the 2022 All-Star Weekend at...

D.E. Shaw spots an opportunity to boost margins at FleetCor – and do so amicably

by
April 1, 2023
0

In this article FLT Follow your favorite stocksCREATE FREE ACCOUNT Djelics | E+ | Getty Images Company: FleetCor Technologies (FLT)...

At least 21 are dead after tornadoes rake the U.S. Midwest and South

by
April 1, 2023
0

A car is upturned in a Kroger parking lot after a severe storm swept through Little Rock, Ark., Friday, March...

ETF outlook: Why Wall Street strategists aren’t chasing a growth stock trade just yet

by
April 1, 2023
0

The rally in growth and tech stocks in the first quarter caught much of Wall Street off-guard, but many ETF...

On the cusp of record inflows? Playing the hot international trade with ETFs

by
April 1, 2023
0

In this article BAC Follow your favorite stocksCREATE FREE ACCOUNT There's a corner of the market gaining traction among ETF...

Next Post

Jobless claims little changed in potential sign that layoffs have hit a plateau

Here are Thursday's biggest analyst calls of the day: Amazon, Deere, Square, Uber & more

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:



By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • WHO says Covid vaccine booster programs will prolong pandemic

    0 shares
    Share 0 Tweet 0
  • Forget Tesla — this auto stock is the one to buy right now, analyst says

    0 shares
    Share 0 Tweet 0
  • Spin or Split? AT&T Has a Big Decision to Make on Discovery Stake.

    0 shares
    Share 0 Tweet 0
  • Here’s how Carl Icahn is positioning for a possible recession in America

    0 shares
    Share 0 Tweet 0
  • Some lawmakers and their families are betting thousands of dollars on crypto

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by tradingconcept.net
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

All rights reserved by www.tradingconcept.net