China’s Alibaba profit tumbles 86% though revenue beats estimates
CNN
China’s Alibaba Group Holding reported an 86% plunge in fourth-quarter profit on Tuesday primarily due to valuation changes from equity investments, pushing its US-listed shares down almost 6% in early trading even though revenue beat forecasts.
China’s Alibaba Group Holding reported an 86% plunge in fourth-quarter profit on Tuesday primarily due to valuation changes from equity investments, pushing its US-listed shares down almost 6% in early trading even though revenue beat forecasts. It also announced it would revive a plan first floated in 2022 to upgrade its secondary listing in Hong Kong to a primary listing, while retaining its primary listing in New York. It aims to complete this dual-primary listing by August. China’s largest e-commerce group by market share has had a tumultuous year since announcing the biggest shake-up in its 25-year history in March 2023, splitting into six units and refocusing on its core businesses, including domestic e-commerce. Consumers in China have also been spending carefully after the Covid-19 pandemic amid an economic slowdown and prolonged property slump. Alibaba’s focus on low-cost goods in response to the cautious consumer spending helped boost domestic e-commerce sales, driving 7% growth in overall revenue in the quarter to March 31. Group net income, however was 3.27 billion yuan ($452 million), compared with 23.52 billion yuan a year ago.
Millions of Americans have taken to the skies, hit the road, fired up the barbecue grill and jumped into the pool this weekend to celebrate the start of summer 2024. Analysts are expecting the Memorial Day weekend to usher in yet another summer of strong consumer spending on travel and other leisure activities.