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Alibaba posts flat revenue growth for the first time


Shares of the Chinese tech and e-commerce large jumped greater than 6% in premarket buying and selling in New York on Thursday. Its inventory in Hong Kong had earlier closed up 5.2%.

The pop got here regardless of the firm reporting revenue of practically 205.6 billion yuan (about $30.4 billion) in the quarter ended June, roughly in keeping with what it recorded the identical time final 12 months.

But that topped analysts forecasts, and internet earnings was additionally higher than anticipated, at 22.7 billion yuan ($3.4 billion).

Alibaba (BABA), which owns the massively in style Taobao and Tmall on-line procuring platforms, was not immune from the financial ache of Covid-19 lockdowns throughout China earlier this 12 months.

The firm stated its retail gross sales slumped in April and May, significantly as Shanghai and different main Chinese cities handled crippling pandemic restrictions that scuttled shopper demand and created logistical nightmares.

But since June, enterprise has picked again up, significantly “as logistics and the supply chain situation gradually improved after Covid restrictions eased,” stated CEO Daniel Zhang.

Alibaba stock slides in Hong Kong after US delisting threat
On a convention name Thursday, Zhang stated the firm had seen glimmers of restoration in classes like vogue and electronics, which had been hit hard earlier on.

Despite growth nearly skidding to a halt, Zhang sought to place a very good spin on the newest outcomes, noting the firm had overcome “soft economic conditions” to “deliver stable revenues.”

However, he warned of a rocky highway forward, pointing to wider financial dangers.

“The external uncertainties, including but not limited to international geopolitical dynamics, Covid resurgence, and China’s macroeconomic policies and social trends, are beyond what we as a company can influence,” Zhang advised analysts.

“The only things we can do at this moment is to focus on improving ourselves,” he stated, including that Alibaba had targeted on narrowing losses throughout companies similar to its grocery store and meals supply models.

But Alibaba has confronted greater questions recently, significantly after its addition to a key US Securities and Exchange Commission watchlist final Friday. Similar to different Chinese companies, the transfer places the tech titan liable to being ejected from Wall Street if US auditors cannot absolutely examine its monetary statements.
Alibaba stock jumps after announcing Hong Kong primary listing

Alibaba has lengthy had a major itemizing in New York, the place its shares have traded since a large IPO in 2014.

Now, it seems to be spreading its bets. Last week, the firm announced plans to improve its secondary listing in Hong Kong to a major itemizing. The change may happen by the finish of this 12 months, and would give extra mainland Chinese buyers entry to the inventory.

That comes simply as certainly one of Alibaba’s largest longtime backers is seen to be pulling again.

The Financial Times reported Thursday that SoftBank (SFTBF) had “sold more than half” of its holdings in the Chinese firm, citing filings of ahead gross sales seen by the newspaper.

SoftBank didn’t instantly reply to a request for remark.

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