As known from:
CoinWireICOBenchCoinCodex
Write a Review
Write a Review
Nothing Found
Contains commercial content
TradersBest.com / Alibaba Posts Flat Revenue Growth But Stock Still Jumps 6%

Alibaba Posts Flat Revenue Growth But Stock Still Jumps 6%

Publish Date: 08/08/2022

Chinese ecommerce giant Alibaba posted its first earnings report that showed flat revenue growth, but investors didn’t seem to care as its stock jumped 6% to end the day’s trading nearly 2% higher.

Ally Invest
4.7/5
Ally Invest Review
T&Cs apply, 18+
Visit Site
Webull
4.7/5
Webull Review
T&Cs apply, 18+
Visit Site
Firstrade
4.5/5
Firstrade Review
T&Cs apply, 18+
Visit Site

Alibaba’s quarterly earnings report showed that the brand enjoyed revenue of $30.4 billion which is about the same as this time last year. While the flat revenue growth may look disappointing, the company’s net income managed to exceed expectations and brought in $3.4 billion.

Although Alibaba remains unscathed from the earnings report, its earnings per American depositary share was down 29% year-on-year. Alibaba owns the hugely successful Tmall and Taobao online shopping sites and is widely expected to experience improved growth for the remainder of 2022.

Why Alibaba had a difficult quarter

There have been multiple factors why Alibaba has struggled over the past quarter. One of the key reasons is that there has been a resurgence in the number of Covid cases in several parts of China – including the financial center of Shanghai. Thankfully, there were modest signs of a recovery as the cities emerged out of lockdown in June. Still, it was evident that overall consumer demand and logistical problems hit Alibaba hard over the past quarter.

Beyond the pandemic, China’s authorities have also imposed a variety of tough regulations that affect Alibaba’s operations. It’s part of a trend that has been visible for over 18 months in which China’s technology sector has found itself at a level of much higher scrutiny. All of which could have contributed to SoftBank’s shock decision to sell over half of its Alibaba stock as was reported at the end of last week.

Alibaba will also have to be careful in how it operates in the US. This is because the US Securities and Exchange Commission placed the Chinese ecommerce brand on a watchlist last week. Such a move was made due to concerns that US-based auditors wouldn’t be able to inspect the required financial statements from Alibaba. If Alibaba fails to appease the regulators, it could see itself being kicked off Wall Street.

Can Alibaba get back on track?

While Thursday’s report may have made for underwhelming reading, Alibaba appeared to be turning the corner in June. This was largely due to improvements made in logistics, and the supply chain issues of early 2022 appeared to be easing.

As a result, Alibaba started to notice a gradual recovery in various sectors such as electronics and fashion in early summer. Such a positive move could be well-timed considering that Alibaba is expected to upgrade its Hong Kong listing towards the end of the year which means that more Chinese investors would be able to buy its stock.

The earnings report should also provide some positivity in that Alibaba’s cloud computing sector enjoyed a growth of 10% on the previous year. So while the overall picture might be confusing, Alibaba is expected to override the current storm.

Our favorite brokers for stocks trading

Ally Invest
1.
Favicon
4.7/5
Visit Site
T&Cs apply, 18+
Webull
2.
Favicon
4.7/5
Visit Site
T&Cs apply, 18+
Firstrade
3.
Favicon
4.5/5
Visit Site
T&Cs apply, 18+
Kraken
4.
Favicon
4.3/5
Visit Site
T&Cs apply, 18+
Stash
5.
Favicon
Read Also
US Retailers Hit By Unexpected Quarterly Losses
This week has seen two of the biggest clothing retailers in the ...
Amazon Stock Price Hit by Weak Earnings Report
The Amazon share price tumbled by as much as 3% on Monday ...
Amazon Shares Jump 19% After Excellent Earnings Report
Shares in Amazon soared after the ecommerce giant posted a massive rise ...
Google Stock Jumps 9% After Dazzling Earnings Report
Alphabet, the parent company of Google, saw its stock value skyrocket after ...
Microsoft Earnings Report Brings Good News For Investors
Tuesday saw Microsoft delivering a positive fiscal second-quarter earnings report. This showed ...
Latest News
Study: how do finances shape our love life?
Do we find someone less attractive if they're ...
Is FTX Bankrupt? 
The crypto market has seen a drastic change ...
Disney Shares Jump 6% After Positive Earnings Report
A booming subscriber base and the return of ...
Intel Stock Slumps Over 8% Following Weak Earnings Report
Chip-maker Intel suffered a disastrous end to last ...
S&P 500 Enjoys Its Best Month Since 2020
While 2022 has been a gloomy year on ...
Top Forex Sites
Ally Invest
Ally Invest
Ally Invest Review
4.8/5
Webull
Webull
Webull Review
4.6/5
Kraken
Kraken
Kraken Review
4.3/5
Nadex
Nadex Review
3.6/5
Interactive Brokers
Interactive Brokers Review
4.8/5
Receive the latest trading news by email + our free eBook
Crypto eBook EN
Nobody is born a trading expert. Register now to receive the Ultimate Guide to Trading Cryptocurrencies in 2022 (and beyond), and receive the TradersBest.com newsletter with the latest market news and broker reviews!.

By registering, I agree that TradersBest.com may send me newsletters via email at regular intervals. This consent can be revoked at any time.
Receive the latest trading news by email + our free eBook
Nobody is born a trading expert. Register now to receive the Ultimate Guide to Trading Cryptocurrencies in 2022 (and beyond), and receive the TradersBest.com newsletter with the latest market news and broker reviews!.

By registering, I agree that TradersBest.com may send me newsletters via email at regular intervals. This consent can be revoked at any time.
Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or www.800gambler.org; or (b) Gamblers Anonymous at 855-2-CALL-GA or www.gamblersanonymous.org.

Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

This site is using Cloudflare and adheres to the Google Safe Browsing Program. We adapted Google's Privacy Guidelines to keep your data safe at all times.

21+NCPGGamblers AnonymousCloudflareSSL
Close
Unlock the Market’s Potential! Discover Our Top Trading Platform Deals.
eToro
eToro
eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation
Go to eToro
Coinbase
Coinbase
T&Cs apply, 18+
Go to Coinbase
×
Your Promo Code:
The bonus offer of was already opened in an additional window. If not, you can open it also by clicking the following link:
Visit Site