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On August 28, 2024, the office building of Alibaba in Nancin, Jiangsu province, China, August 28, 2024.
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Alibaba The shares fell on Thursday after the Chinese e -commerce giant missed profits for its financial fourth quarter both at the top and bottom line.
The shares decreased by 5% in the US trade in the US at 6:02 am.
Here’s how Alibaba did in his financial fourth quarter, which ended in March against LSEG’s estimates:
- Income: 236.5 billion Chinese yuan ($ 32.6 billion) vs. 237.2 billion yuan who were waiting
- Net income: 12.4 billion yuan, comparing 24.7 billion expected.
While analysts’ expectations, revenue has increased by 7% compared to last year.
Alibaba’s net income also remained 279% of the higher year outside the low base. Alibaba said that as a result of the disposal of some of her subsidiaries, there were some losses, which was offset by an increase in revenue from operations and changes in the investment in the stock.
However, analysts hoped that the company’s investment in artificial intelligence and its main e -commerce business would help him hit or exceed great expectations.
But Alibaba fights macroeconomic instability, which has affected the mood of consumers in China. A trading war in Washington with Beijing created uncertainty in the second largest economy in the world, in which the last quarter had large tariffs that hit both sides in which Alibaba reports.
This month, Beijing and Washington agreed to suspend most of the tariffs on each other.
The main department of the Alibaba Taobao and Tmall-Chinese e-commerce business is 9% to 101.4 billion yuan. This growth rate is faster than the level observed in the previous quarter. Customer management profits, which Alibaba makes from the sale of marketing and other services to merchants on its platform, jumped 12% compared to last year. This is a big income driver for the company.
During the last few months, China has also introduced a policy for consuming and buying consumers.
Going to increase purchases on their Tmall and Taobao platforms, Alibaba continued partnerships with Rednote, or Xiaohongshu like Instagram, similar to the service in China. The transaction allows you to install TAOBAO links in Rednote, so users can be attributed directly to the shopping page.
Even with these changes, Alibaba faces an intense price in China with competitors, including PDD and JD.com.
The cloud growth is accelerated
Alibaba stated that in the March quarter the proceeds in the cloud amounted to 30.1 billion yuan, increasing by 18%compared to a year than the growth that is observed in the previous quarter.
The company stated that this was due to “faster growth in cloud” and “increase in the adoption of AI -related products.
Investors are also focusing on Alibaba’s efforts in artificial intelligence, where it has become a leading player in the country and in the world.
In April, Hangzhou eagerly launched the latest version of its large linguistic QWEN 3 source, which is used to feed the AI AI AI AI ALIBABA assistant.
AI’s competition in China is hot and deteriorated by the Deepseek innovative model launched earlier this year. The Chinese Technological Giant Tencent, meanwhile, announced a 91% overhaul growth in the first quarter due to investments in II.
Alibaba CEO Eddi Wu said in a profit release that the AI revenue has reached a “triple growth for the seventh quarter in a row”. WU did not indicate the figure for ai-gBorn profit.
