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Alibaba Exceeds Earnings Expectations
What you need to know before the US markets open 🇺🇸
Hey Global Investor, here's what you need to know before the US markets open.
Market Snapshot 📈
S&P 500 (Thursday Close) 3,385.51 +10.66 (0.32%)
NASDAQ (Thursday Close) 11,264.95 +118.49 (1.06%)
FTSE 100 (5 PM IST) 6007.07 -6.27 (-0.10%)
NIFTY 50 (Today's Close) 11,376.80 +64.60 (0.57%)
USDINR (5 PM IST) 74.88 (1 Year +5%)
Alibaba’s Stock Retreats Despite Positive Earnings
Alibaba Group topped earnings and revenue expectations when the company released its quarterly results yesterday. However, the stock slipped 1.6% during afternoon trading.
What Happened? The e-commerce giant reported “healthy growth” across most of its businesses as China recovers from the Covid-19 crisis. CEO Daniel Zhong spoke about the company’s struggles during the pandemic, but also highlighted new opportunities that emerged. Gross merchandise value of online purchases at Alibaba’s Tmall marketplace grew 27%.
Alibaba also reported a higher average spending per user as well as higher purchase frequency across cities. The company also reported an incremental 16M active consumers in the June quarter compared to the previous quarter.
While Alibaba’s international expansion plans have been slow to take off, the company’s e-commerce segment has shown impressive growth, and the losses from its new investments have shown a downward trend.
Alibaba reported revenues worth RMB 153.75B against expected RMB 148B. Adjusted earnings per ADR was RMB 14.82 versus expected RMB 13.82.
Market Reaction: Alibaba slipped 1.01% during trading hours to close at $257.97. The stock is up 0.85% before hours.
Alibaba Snapshot 📈
BABA $257.97 -2.62 (-1.01%)
Analyst Rating (56 Ratings) BUY 98% HOLD 2% SELL 0%
Cheap Trick: Apple reportedly using cheaper iPhone battery parts to offset 5G cost (AAPL +2.22%)
Goodbye Old Friend: Facebook’s old web design will disappear in September (FB 2.44%)
Good Signs: Pfizer and BioNTech’s favored Covid-19 vaccine has fewer side effects than their first (PFE +1.20%, BNTX +1.02%)
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