Alibaba posts stable revenue growth for the first time
Shares of the Chinese tech and e-commerce giant jumped more than 6% in premarket trading in New York on Thursday. Its Hong Kong stock had previously closed up 5.2%.
The pop came despite the company reporting revenue of nearly 205.6 billion yuan (about $30.4 billion) in the quarter ended June, roughly matching what she recorded at the same time last year.
But that beat analysts’ forecasts, and net profit was also better than expected, at 22.7 billion yuan ($3.4 billion).
The company said its retail sales tumbled in April and May, especially as Shanghai and other major Chinese cities faced crippling pandemic restrictions that scuttled consumer demand and created logistical nightmares.
But since June, business has picked up, especially “as the logistics and supply chain situation has gradually improved following the easing of Covid restrictions,” CEO Daniel Zhang said.
Despite the near-stop in growth, Zhang sought to put a good spin on the latest results, noting that the company had overcome “weak economic conditions” to “generate stable revenue”.
However, he warned of a difficult road to travel, pointing to wider economic risks.
“External uncertainties, including but not limited to international geopolitical dynamics, the resurgence of Covid, and China’s macroeconomic policies and social trends, are beyond what we can influence as company,” Zhang told analysts.
“The only thing we can do right now is to focus on our improvement,” he said, adding that Alibaba had focused on reducing losses in businesses such as its supermarkets and units. food delivery.
Alibaba has long had a primary listing in New York, where its shares have been trading since a massive IPO in 2014.
This comes just as one of Alibaba’s biggest backers appears to be pulling out.
SoftBank did not immediately respond to a request for comment.