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6d ago

Alibaba Shares Drop 7% as Revenue and Earnings Miss Expectations

The company highlights AI-driven advertising and instant retail investments to counter weak consumer sentiment and fierce competition in China's e-commerce market.

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Overview

  • Alibaba reported fiscal Q4 revenue of 236.45 billion yuan, slightly below the 237.24 billion yuan expected by analysts.
  • Adjusted earnings per American Depositary Share came in at 12.52 yuan, missing the forecasted 12.94 yuan.
  • U.S.-listed shares fell nearly 7% following the earnings release, reflecting investor concerns over missed estimates.
  • Taobao and Tmall, Alibaba's domestic e-commerce platforms, saw a 9% year-on-year revenue growth, attributed to increased consumer orders.
  • The company plans aggressive investments in AI-powered marketing and instant retail services to drive growth in a highly competitive and cost-sensitive market.