Alibaba reported earnings that beat expectations on Thursday, sending its shares higher in U.S. premarket trade.
Ahead of Alibaba’s earnings report, Hong Kong shares rose 4%, while U.S. shares gained 7%.
The company reported earnings for its fiscal first quarter on Thursday that beat forecasts, sending shares higher in pre-market trading in the U.S.
Ahead of Alibaba’s earnings report, Hong Kong shares rose 4%, while U.S. shares gained 7%.
Here’s what Alibaba reported in its first quarter, compared to what the rest of the market is estimating
- * Revenue: 205.55 billion Chinese yuan ($30.68 billion) vs 203.19 billion yuan expected, remaining flat year-on-year.
- * Earnings per American depositary share (ADS): 11.73 Chinese yuan vs 10.39 yuan expected, down 29% year-on-year.
- * Net income: 22.73 billion yuan vs 18.72 billion yuan expected.
In the quarter, Alibaba faced a number of challenges, including a renewed competitive landscape in China that led to major cities, including the economic hub of Shanghai being locked down, which contributed to the lethargic Chinese economy during the second quarter of the year.
China’s technology sector is currently being subjected to a year-and-a-half-long crackdown by Beijing.
Despite its poor performance during the most recent quarter, analysts are predicting a turn-around in its performance during the coming months.
