Photo credit: www.cnbc.com
Alibaba Reports Earnings Below Expectations Amid Tough Market Conditions
Recent financial results indicate that Alibaba Group Holding Ltd. has not met expectations for the June quarter of 2024, facing ongoing challenges in its primary e-commerce sector. The latest figures reveal a combination of increased competition and a restrained consumer market in China.
In premarket trading in the U.S., Alibaba’s shares experienced a decline of approximately 3.20% following the release of their earnings report.
Earnings Overview
Here are the specifics of Alibaba’s performance for the June quarter compared to the estimates provided by LSEG:
Revenue: 243.24 billion Chinese yuan ($34.01 billion) vs. expected 249.05 billion yuan.
Net income: 24.27 billion yuan vs. expected 26.91 billion yuan.
Challenges Ahead
As Alibaba attempts to reinvigorate its growth trajectory after a challenging year in 2023, the company has undergone its most significant organizational restructuring to date. This phase was marked by notable leadership transitions, with Eddie Wu stepping into the role of chief executive in September.
The company’s struggles are compounded by a cautious consumer base in China and intensifying competition from other players in the market, notably JD.com and PDD, the parent company of Temu.
This is a breaking news story. Please check back for more.
Source
www.cnbc.com