Alibaba Group Holding Ltd. (BABA) – Get the report
released stronger-than-expected second-quarter results on Thursday as core e-commerce revenue jumped nearly a third after China eased coronavirus lockdown restrictions.Alibaba said non-GAAP diluted diluted profit for the three months ending September, the group’s fiscal second quarter, was set at $ 4.83, down 63% from same period year last, but well ahead of the Street consensus forecast of $ 2.08 per share. The group’s revenue, Alibaba said, rose 30% to a US dollar equivalent of $ 22.838 billion, but is barely lower than analysts’ estimates of a total of $ 23.19 billion.
In Chinese yuan terms, Alibaba’s revenue was pegged at 155.06 billion, against a Refinitiv forecast of 154.74 billion.“Alibaba had another great quarter. We continued to help businesses recover and find new growth opportunities through digitization in the post-pandemic landscape. The strong performance of our core business and the robust growth of Alibaba Cloud are a direct result of our commitment to creating value for customers, ”said CEO Daniel Zhang. “We remain focused on our three long-term growth drivers – domestic consumption, cloud computing and data intelligence, and globalization – to effectively seize the opportunities arising from continuous changes in consumer demand and accelerating the digitization of businesses in our digital economy.
Alibaba’s U.S.-listed shares were marked 3.5% lower in pre-market trading immediately after the results were released to indicate an opening price of the bell of $ 285.41 each.
Earlier this week, Alibaba shares fell the most in at least two years after Shanghai Stock Exchange officials suspended Ant Group’s $ 37 billion pending listing, which is 33% owed by Alibaba, after failing to adhere to the pre-established rules to provide timely information.
Ant Group, a digital payments company founded by Ma in 2014, was scheduled to list around 11% of its equity on the Shanghai and Hong Kong stock exchanges this week in what would have been the world’s largest IPO.
Bookbuilding has suggested that the Hong Kong portion of the listing could value Ant Group at over $ 300 billion.