Business

Alibaba is likely to see modest sales growth


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  • Chinese e-commerce giant Alibaba is expected to post flat quarterly profit and modest sales growth when it reports results for the September quarter on Nov.
  • Analysts expect adjusted earnings of 11.23 yuan per share traded in the US compared with 11.20 yuan in the previous quarter.
  • Options traders have recently begun to be optimistic about Alibaba amid signs that China is loosening regulations on the company.
  • China’s slowing economic growth remains a major risk after the Singles’ Day promotion was muted.

Chinese e-commerce and cloud computing giant Alibaba Group Holdings Ltd. (TORTOISE) began to report quarterly earnings, boosting investor optimism despite a sharp slowdown in China’s economic growth this year.

Alibaba is expected to post adjusted earnings of 11.23 yuan ($1.58) per share traded in the US for the quarter through September, two-tenth of a percentage increase. year-over-year after four straight quarters of falling profits, based on median estimates of analysts tracked by Visible Alpha. Revenue is expected to grow 4% after a slight decline in the June period, the first quarterly revenue decline as a public company, following gains of less than 10% in each of the two periods before. During the previous 14 quarters, revenue growth ranged from a low of 29% to a high of 64%.

Options traders have driven stock prices make a call A drop near a record low could depend on an upbeat market reaction if Alibaba confirms recent reports on progress with Chinese as well as US regulators. China’s harsh regulatory crackdown on the company and other big tech companies appears to be easing, with one investment analyst noting that Alibaba recently received a positive progress report. from Chinese regulators on improvements in areas including seller and user protection.

Meanwhile, US inspectors from the Public Company Accounting Oversight Commission reported that they had received cooperation from Hong Kong and Chinese auditors of Chinese companies regarding the review. US listings, raising hopes of resolving a conflict that has jeopardized Alibaba’s listing on the New York Stock Exchange.

Interest in Chinese stocks has revived recently after the Chinese government took initial steps to ease quarantine measures under its “No Covid” policy and introduced a package of bailout provisions. aid to address a property slump that is affecting consumer spending and the province’s tax revenue. That has boosted Alibaba’s value by 20% over the past five trading days.

Meanwhile, there is little sign that the Chinese economy and Alibaba’s sales will recover quickly. Alibaba and rival JD.com Inc. (JD) broke precedent this year by choosing not to disclose online sales from Singles’ Day, a major Chinese online shopping promotion, amid sales forecasts that will disappoint. .


Source: TradingView.

Source: TradingView

Alibaba earnings history

Alibaba’s Q6 revenue and earnings beat market expectations on Aug. 4, and the company’s U.S.-traded shares are up nearly 2% that day. Alibaba surged nearly 15% in New York trading on May 26 after March quarter earnings and revenue beat analyst estimates.

Alibaba Key Stats

Estimates for the second quarter of fiscal year 2023 Q2 fiscal year 2022 Second quarter of fiscal year 2021
Adjusted earnings

Every ADVERTISEMENT (Yuan)
11.23 20 o’clock 11 17.97
Revenue (billion yuan) 209.2 200.7 155.1

Source: Alpha can see

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