Homeecommerce marketplaceAlibaba shares sees a dip in revenue

Alibaba shares sees a dip in revenue

Alibaba shares report the slowest 10% growth year-on-year. There were a lot of macroeconomic headwinds. The company is facing a lot of competition. Alibaba shares went down to 0.7%.

Alibaba shares missed a lot of expectations accounting for the missed expectation. The revenue acquisition was 242.58 billion yuan. The expectation was set at 246.37 billion yuan. The Earning Per Share went up by $2.65 yuan per. The 23% year-on-year fall on Alibaba shares.

The company recorded the slowest quarterly growth of 10%. The dropping of Alibaba shares caused a huge loss in the trading session.

The eCommerce giant had sluggish sales in the fourth quarter. The heightened competition in the Chinese market is one of the main causes. The tightened regulation in the Chinese technology sectors. The areas included antitrust to data protection. The shares fell by 50% from the last year.

The earning conference call gave the statement, “Our current share price does not fairly reflect the value of the company. At current price levels, we plan on continuing our share repurchases. At the same time, we will maintain a strong cash position that gives us the financial flexibility for future investments.”

Alibaba recently bought $1.4 billion worth of depository shares. The share repurchase scheme is going to expire in December 2022. Investors are taking metrics into consideration. Customer management revenue & cloud computing revenue make a list as well.

The company broke down and reported different segments. The company will focus on the “core commerce”. The company will be splitting up China and international retail business. They now belong to different categories. It took out the logistics arm, Cainiao, and local consumer service.

This also includes the food delivery platform “ele.me”. Alibaba will also notify of the adjusted earnings before earnings. The taxes, depreciation, and amortization for every segment will be in detail.

Lastly, Alibaba shares had a major fallback. The increased investment over the year can help in recovery.

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