Alibaba stock in free fall on the Nyse after the publication of the results of the second quarter of its fiscal year, which closed with profits in a nosedive, but revenues on the rise. Half an hour after the opening of the American market, the shares lost almost 10% of their value to 146,16 dollars. Since the beginning of the year, due to the digital restrictions imposed by the Chinese government, the stock has lost 38%.
Going back to today, the downpour of sales on the stock was triggered by the results of the period from July to September, which ended with a net profit down 81% at 5,37 billion yuan (741,3 million euros) compared to the 28,7 billion yuan recorded in the same period of 2020. In addition to the new digital legislation, the 2,3 billion fine euro imposed on the group for hindering competition.
Good news comes on the other hand revenues, up 29% to 155 billion yuan (21,4 billion euros). "This quarter, Alibaba continued to invest firmly in our three strategic pillars of domestic consumption, globalization and cloud computing to lay a solid foundation for our long-term goal of sustainable growth going forward," he said. Daniel Zhang, president and chief executive officer of the group.
“Our annual active consumers across the ecosystem have reached approximately 1,24 billion, a net quarterly increase of 62 million consumers, and we are on track to meet our long-term goal of serving two billion consumers globally. global,” he added. For Maggie Wu, chief financial officer of Alibaba Group, “We reported 29% year-over-year revenue growth, driven by the performance of our diversified businesses. During this quarter, our continued investments in key strategic areas have resulted in robust growth for these young companies."
By virtue of the milestone already achieved on revenues, the company has revised the guidance for 2022 for the fiscal year 2022. “We expect – states the note – that the turnover will grow between 20% and 23% year on year”. These are percentages below the estimates of the market consensus which indicated around 28% growth.
