Alibaba has faced growth challenges amid tightening regulation of China’s domestic tech sector and a slowdown in the world’s second-largest economy. But analysts say the e-commerce giant’s growth could accelerate through 2022.
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Alibaba reported fiscal first-quarter earnings on Thursday that beat expectations, sending shares higher in pre-market US trading.
Shares of the Chinese e-commerce giant in Hong Kong jumped more than 4% ahead of the earnings report. Alibaba’s US-listed shares are 7% higher.
Here’s how Alibaba did in its fiscal first quarter, compared to Refinitiv consensus estimates:
- Revenue: 205.55 billion Chinese yuan ($30.68 billion) versus 203.19 billion yuan expected, unchanged year-on-year
- Earnings per American Depository Share (ADS): 11.73 Chinese yuan versus 10.39 yuan expected, down 29% year-on-year
- Net income: 22.73 billion yuan versus 18.72 billion yuan expected
This quarter, Alibaba has faced a number of difficulties including a resurgence of Covid in China, which has resulted in major cities, such as the financial capital Shanghai, being closed. That leads to a China’s economy slows down in the second quarter of the year.
Meanwhile, the e-commerce giant continues to face a strict regulatory environment following Beijing’s more than a year and a half crackdown on the domestic tech sector.
While Alibaba had a rough quarter, analysts are expecting growth will pick up in the coming months.
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