Index Option Calls
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Index Option Calls
No Result
View All Result
Home Latest News

Alibaba Stock Is Tumbling After a Bad Earnings Miss and Slashed Sales Outlook

by
November 18, 2021
in Latest News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter
Text size

Alibaba stock was falling after the e-commerce giant’s earnings fell short.

Greg Baker/AFP via Getty Images


Alibaba

stock was tumbling Thursday after the Chinese e-commerce giant’s quarterly results fell well short of expectations and the company cut its sales outlook for the full year.

U.S.-listed shares of Alibaba (ticker: BABA) fell near 5.5% in premarket trading Thursday. The stock has declined almost 30% this year amid a broad crackdown by Beijing on Chinese technology companies.

RELATED POSTS

J.P. Morgan Says Now Could Be a Good Time to Buy Cybersecurity Stocks; Here Are 2 Names With Promising Growth Potential

2 LiDAR Stocks Under $10 With Over 100% Upside Potential; J.P. Morgan Says ‘Buy’


Alibaba

‘s Hong Kong-listed shares (9988.H.K.) slipped 5.3% Thursday ahead of earnings.

In the three months ended Sept. 30, which Alibaba reports as its second fiscal quarter, the company notched sales of $31.1 billion. Earnings before interest, taxes, and amortization—the preferred adjusted measure of profits—was $4.4 billion, delivering earnings per share of $1.74.

Wall Street’s expectations were for sales to be slightly below $40 billion, with earnings of $4.9 billion delivering EPS of $1.86.

The group also slashed its revenue outlook for the full year. In May, Alibaba projected more than 930 billion Chinese yuan ($146 billion) in sales for the year ending March 2022—which would represent nearly 30% year-over-year growth. It has now cut that figure starkly, projecting revenue to grow 20% to 23%.

Alibaba has an issue with declining profitability from last year. Margins in the quarter, as measured using its adjusted earnings metric, collapsed by almost one-half from the year-ago period—from 27% to 14%. Pressure on profits was most pronounced in Alibaba’s core commerce segment, where margins slipped from 35% to 19%. The company blamed that on investment in strategic initiatives and the consolidation of an acquisition into its financial reporting.

“This quarter, Alibaba continued to firmly invest into our three strategic pillars of domestic consumption, globalization, and cloud computing to establish solid foundations for our long-term goal of sustainable growth in the future,” Daniel Zhang, the group’s chair and CEO, said in a statement. 

“Our global annual active consumers across the Alibaba Ecosystem reached approximately 1.24 billion, with a quarterly net increase of 62 million consumers,” Zhang added. “We are on track to achieve our longer-term target of serving two billion consumers globally.”

Alibaba last week reported that it smashed its previous sales record for the two-week Singles Day event, China’s version of Black Friday and the world’s largest shopping spree.

As one of the world’s largest technology companies and a Chinese corporate heavyweight, Alibaba’s results are closely watched on their own merits. But they are also an important indication of sentiment among Chinese consumers, and, in turn, the strength of the world’s second-largest economy.

While Alibaba’s results disappointed the market—indeed, earnings fell 32% from 2020 levels—they don’t signal overt weakness in Chinese consumption trends. Though revenue fell short of Wall Street’s expectations, Alibaba’s sales remain 29% higher year-over-year. Even adjusting for the consolidation of Sun Art—a Chinese big-box retailer Alibaba acquired in the last year—sales would have shot up 16%.

Competitor


JD.com

(JD) reported a more than 25% jump in third-quarter revenue Thursday, sending the stock 2.5% higher in premarket trading.

Write to editors@barrons.com

ShareTweetPin

Related Posts

J.P. Morgan Says Now Could Be a Good Time to Buy Cybersecurity Stocks; Here Are 2 Names With Promising Growth Potential

by
January 28, 2023
0

S&P 500 4,070.56 +10.13(+0.25%)   Dow 30 33,978.08 +28.67(+0.08%)   Nasdaq 11,621.71 +109.30(+0.95%)   Russell 2000 1,911.46 +8.39(+0.44%)   Crude...

2 LiDAR Stocks Under $10 With Over 100% Upside Potential; J.P. Morgan Says ‘Buy’

by
January 28, 2023
0

S&P 500 4,070.56 +10.13(+0.25%)   Dow 30 33,978.08 +28.67(+0.08%)   Nasdaq 11,621.71 +109.30(+0.95%)   Russell 2000 1,911.46 +8.39(+0.44%)   Crude...

What will the Fed and Jerome Powell do next week?

by
January 28, 2023
0

Jittery U.S. investors are still in “bad news is good news” mode because they want to see interest rates decline....

My Bank Closed My Account. What Do I Do Now?

by
January 28, 2023
0

S&P 500 4,070.56 +10.13(+0.25%)   Dow 30 33,978.08 +28.67(+0.08%)   Nasdaq 11,621.71 +109.30(+0.95%)   Russell 2000 1,911.46 +8.39(+0.44%)   Crude...

COVID Jan 27, 2022: Update on Cases, Hospitalizations and Deaths

by
January 28, 2023
0

by Calculated Risk on 1/27/2023 09:58:00 PM On COVID (focus on hospitalizations and deaths). Data is now weekly. Weekly deaths...

Next Post

Jobless claims little changed in potential sign that layoffs have hit a plateau

Here are Thursday's biggest analyst calls of the day: Amazon, Deere, Square, Uber & more

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • A Couple Stored IRA Gold at Home. They Owe the IRS More Than $300,000.

    0 shares
    Share 0 Tweet 0
  • A California Couple Spent Eight Years Building Their Dream Retirement Home in Costa Rica

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs says buy these stocks to play Web 3.0 and the metaverse

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs picks new stocks to buy — and says these 5 have over 100% upside

    0 shares
    Share 0 Tweet 0
  • In his final warning, this stock trading wizard — who made big money in bear markets and crashes — called this market a bubble like no other

    0 shares
    Share 0 Tweet 0
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.indexoptioncalls.com
No Result
View All Result
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.indexoptioncalls.com