Alibaba’s December quarter earnings fall short of estimates due to tough economy and higher competition

Alibaba Group Holding, a Chinese e-commerce giant, reported financial results in the December quarter that were lower than expected. The company faced challenging economic conditions and increased competition in the online shopping sector. Their net profit fell 77 per cent to 10.7 billion yuan in the three months ended December 31. This was lower than analysts’ consensus estimate of 38.16 billion yuan, and missed analysts’ consensus estimate of 261.25 billion yuan for revenue growth, which rose 5 per cent.

The company’s performance for the quarter was described as “solid” by Alibaba chief executive Eddie Wu Yongming. He mentioned that they executed “focused strategies across the organisation” and their top priority is to reignite the growth of their core businesses, including e-commerce and cloud computing. However, this performance is concerning, given the challenging economic conditions and increased competition they are facing. Shares of Alibaba closed down 1.45 per cent to HK$74.90 on Wednesday in Hong Kong, ahead of the quarterly earnings release.

By Editor

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