Despite the fact that Alibaba has just revealed that its revenue growth has been flat for the first time since the company went public, investors do not appear concerned about this new development. During the premarket hours of trading on Thursday morning in New York, the price of shares of a Chinese tech and e-commerce giant rose by more than 6 percent. Earlier, when trading had finished for the day in Hong Kong, the stock had increased by 5.2 percent.
Despite the fact that the company reported revenue of nearly 205.6 billion yuan (approximately $30.4 billion) in the quarter that ended in June, the increase was still observed. This number is roughly in the same ballpark as what was recorded during the same time period the year before.
Forecast By Analysts
However, this was greater than what was forecast by analysts in the industry, and the company reported a net income of $3.4 billion, which is equal to 22.7 billion yuan. Alibaba (BABA), the owner of the immensely popular Taobao and Tmall online shopping platforms, was not immune to the economic pain that was caused by the COVID-19 lockdowns earlier this year across China. In fact, Alibaba was one of the companies that was negatively affected.
According to the company, its retail sales took a nosedive in April and May, particularly as Shanghai and other major Chinese cities dealt with crippling pandemic restrictions that scuttled consumer demand and created logistical nightmares. In particular, this was the case as Shanghai and other major Chinese cities dealt with crippling pandemic restrictions. In particular, this was because pandemic restrictions in Shanghai and other major cities in China had been lifted.
On Thursday, during a conference call, Zhang stated that the company had seen some signs of recovery in areas such as the fashion industry and the electronics industry, both of which had been severely impacted earlier on. Both of these industries have been severely impacted earlier on.
Zhang made an effort to put a positive spin on the most recent results by pointing out that the company had overcome “soft economic conditions” to “deliver stable revenues.” This, despite the fact that growth had virtually come to a complete halt. Zhang’s attempt was an attempt to put a positive spin on the most recent results. Nevertheless, he issued a warning that the path that lay ahead would be challenging, and he pointed to wider economic risks.
Analysts were told by Zhang that the company had no control over “the external uncertainties.” These “external uncertainties” included, but were not limited to, international geopolitical dynamics, the resurgence of COVID, and China’s macroeconomic policies and social trends. Zhang also stated that the company did not have any influence over the resurgence of COVID.
He said, “The only thing we can do at this moment is to focus on improving ourselves,” and he added that Alibaba had focused on narrowing losses across businesses such as its supermarkets and food delivery units. “The only thing we can do at this moment is to focus on improving ourselves,” he said. He stated that the one and only thing we are able to do at this time is to concentrate on developing ourselves further.
United States Securities and Exchange Commission
But in recent times, more significant concerns have been raised, particularly in light of the fact that the United States Securities and Exchange Commission added Alibaba to a significant watchlist that it maintains last Friday. As a direct result of this action, the tech giant runs the risk of being expelled from Wall Street if United States auditors are unable to conduct a comprehensive audit of the company’s financial statements. The stock price went up after it was announced that Alibaba would have a primary listing in Hong Kong. Alibaba’s primary listing has been located in New York for many years, and the city has also been the location where the company’s shares have been traded ever since the massive initial public offering that the company held in 2014.
It appears as though they are trying to cover all of their bases at this point in time. A primary listing will replace the company’s current secondary listing in Hong Kong, as was stated in an announcement made by the company about a week ago. The change could take place before the end of this year, and if it does, it will make it possible for more investors from mainland China to buy shares of the company. This comes at a time when one of Alibaba’s most important and long-term backers is seen to be decreasing the amount of support that they are providing for the company.
The news that SoftBank (SFTBF) had “sold more than half” of its holdings in the Chinese company was revealed in a report that was released by the Financial Times on Thursday. According to the report, the newspaper had access to documents for forward sales that were part of the deal.
The company SoftBank was asked for their opinion, but they did not immediately respond to the inquiry.