Alibaba earnings fiscal Q2: Revenue misses, earnings plunge
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Hangzhou’s Headquarters in China displayed a sign for Alibaba Group Holding Ltd. on Wednesday, November 10, 2021. Alibaba’s 11/11 Singles’ Day online shopping event, which draws thousands of people from all over the world, has become a much more casual affair. The e-commerce company seeks to move the emphasis away from increasing sales, and towards sustainability and philanthropy. These are key pillars under President Xi Jinping’s efforts to reshape China’s economies.
Qilai Hen | Bloomberg | Getty Images
GUANGZHOU, China — AlibabaOn Thursday, earnings and revenue expectations were not met for the September quarter due to slowing Chinese economic growth and China’s crackdown against technology companies.
This is how Alibaba performed in the second quarter of its fiscal year, as compared to Refinitiv consensus estimates.
- Revenue:200.69 Billion Yuan (31.4 Billions) vs 204.93 Billion (estimated), a 29% increase year-on-year.
- EPS: 11.20 yuan vs. 12.36 yuan estimated, a 38% year-on-year decline.
China’s clampdown on China’s domestic technology sector has made Alibaba a victim. There has been an influx of regulations from China. antitrustYou can find more information here data protection.
China’s tech giants, however, have been relatively free from financial constraints over the years. Beijing now wants to correct some of these corporate behaviors. Alibaba was fined $2.8 billion in AprilPart of an antimonopoly investigation
Meanwhile, China’s economy slowed down in the third quarter of the year.
As a result expectations were lower for the fiscal second quarter earnings report. Analysts expect it to be higher. one of the most challenging quarters ever for the Chinese e-commerce giant.
This company comes off Singles Day in China, where many e-commerce sites push for heavy discounts and make billions.
Alibaba raked in gross merchandise volume during the 11-day period totaling 540.3 billion yuan ($84.54 billion). Alibaba will not receive any revenue from the event in its September quarter.
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