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Slowest revenue growth since IPO


Alibaba will open its headquarters in Hangzhou China on Wednesday Nov. 10, 2021.

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AlibabaThe company posted its lowest quarterly revenue growth rate since becoming public on Thursday. It also missed forecasts, however the earnings of Chinese e-commerce titan did surpass expectations.

Below are the results of Alibaba’s fiscal third-quarter compared with Refinitiv consensus estimations: 

  • Revenue: 242.58 billion (38.06 trillion) is compared to 246.37 billion yuan. This represents a 10% annual increase.
  • EPS: 16.87 ($2.65) yuan per share vs. 16.18 yuan per share estimated, A 23% year-on-year fall.

This is the slowest quarter-on-quarter growth rate since the 2014 U.S. Listing.

Alibaba’s businesses have been affected by macroeconomic challenges in China. Chinese retail sales remained sluggish in the fourth quarter of the yearFor example,

During the past year, shares of the company have dropped more than 50% as China tightened regulations on China’s technology sector. antitrust to data protection. Last year, Alibaba was hit with a 18.23 billion yuan ($2.8 billion) fine by regulators as part of an antitrust investigation.

Scrutiny on China’s tech giants continues which is another factor weighing on the company.

Investors are watching a few key metrics including customer management revenue (CMR), cloud computing revenue and the company’s forward guidance.

Analysts expect Alibaba’s core commerce revenue, which includes CMR,To come in at 222 billion yuan, according to Refinitiv estimates.

CMR (the single-largest portion of sales) is Alibaba’s revenue from services like marketing, which it sells directly to customers via its Taobao e-commerce platforms.

China held its multi-day Singles Day Shopping Festival in December. This festival saw huge discounts from retailers and was a major event. Alibaba reported that the gross merchandise volume (GMV), was up 11.5% in this 11-day period. hit a record 540.3 billion yuan.

GMV, or the money transferred across a platform is not directly translated into Alibaba’s revenue.

It is predicted that cloud computing revenues will reach 20.62 billion Yuan.