Alibaba’s Chinese commerce business has shrunk for the first time amid weak consumer spending.The Chinese conglomerate released earnings Thursday (Aug. 15) showing a 27% decline in profit, which dampened the hopes of a turnaround for the company, Bloomberg News reported.According to that report, Alibaba CEO Eddie Wu is leading an overhaul at the company, hoping to drive growth and increase innovation in the wake of China’s crackdown on Big Tech firms earlier in the decade.The company last year embarked on a ...

Financial Data and Key Metrics - Total revenue increased by 4% YoY to RMB243.2 billion [58] - Adjusted EBITDA decreased by 1% YoY to RMB45 billion, but would have turned positive excluding long-term cash incentives [58] - Non-GAAP net income decreased by 9% YoY to RMB40.7 billion [29] - Free cash flow decreased by 56% YoY to RMB17.4 billion, primarily due to investments in AI cloud infrastructure and working capital changes [59] - Alibaba Cloud revenue, excluding consolidated subsidiaries, grew 6% YoY, with public cloud revenue maintaining double-digit growth and AI-related products sustaining triple-digit growth [9][62] Business Line Data and Key Metrics - Taobao and Tmall Group revenue decreased by 1% YoY to RMB113.4 billion, with customer management revenue increasing by 1% YoY [31] - Alibaba International Digital Commerce (AIDC) revenue grew 32% YoY, driven by cross-border business [20][53] - Cloud Intelligence Group revenue increased by 6% YoY to RMB26.5 billion, with AI-related product revenue growing triple digits YoY [62] - Local services group revenue increased by 12% YoY to RMB16.2 billion, with adjusted EBITDA loss narrowing significantly [35] - Cainiao Smart Logistics revenue increased by 16% YoY to RMB26.8 billion, driven by cross-border fulfillment solutions [64] Market Data and Key Metrics - 88VIP members reached 42 million by the end of the quarter [17] - Alibaba Cloud served as a major cloud service provider for the Paris Olympics, with two-thirds of broadcasters using its live signals [18] - Trendyol solidified its e-commerce leadership in Turkey, while Lazada achieved single-month EBITDA profitability in Southeast Asia [55] - Ali Express Choice orders continued to grow, with unit economics improving by nearly 20% QoQ [23] Company Strategy and Industry Competition - The company is focusing on user-first and AI-driven strategies, with significant investments in AI infrastructure and cloud development [16][50] - Alibaba Cloud is pursuing high-quality revenue and executing an integrated cloud-plus-AI strategy, aiming for double-digit growth in external customer revenue in the second half of the fiscal year [37][50] - The company is scaling down less efficient direct sales businesses and improving monetization across loss-making segments [61][89] - Alibaba is integrating AI and intelligent technologies across its platforms, enhancing user experience and operational efficiency [54] Management Commentary on Operating Environment and Future Outlook - Management expects most loss-making businesses to break even within one to two years and contribute to profitability at scale [52][89] - The company is confident in achieving double-digit growth in external cloud revenue in the second half of the fiscal year, driven by strong demand for AI products [50][99] - Investments in AI infrastructure are expected to continue at a high pace, with significant ROI anticipated due to strong customer demand [119][135] - The company is focusing on improving user experience and operational efficiency to drive sustainable growth and profitability [26][50] Other Important Information - The company repurchased 630 million ordinary shares (77 million ADS) for $5.8 billion during the quarter [27] - Alibaba is transitioning from ESOP incentives to long-term cash incentives for employees, which will lower adjusted EBITDA but reduce future dilution [28] - The company is actively pursuing a primary listing in Hong Kong, with a shareholder meeting scheduled for August 22 [75] Q&A Session Summary Question: Competitive landscape and advantages of AIDC - AIDC combines cross-border and local businesses, with a focus on integrating supply chains and improving user experience [73][94] - Ali Express Choice is a key model driving efficiency and user experience improvements [95] Question: AI revenue contribution and growth expectations - More than half of Alibaba Cloud's growth is expected to come from AI products, with strong demand for GPU-based AI development [77][99] - The company sees no slowdown in AI investment demand, as enterprises prioritize AI to enhance competitiveness [78][100] Question: Breakeven timeline for loss-making businesses - Most loss-making businesses are expected to break even within one to two years, with local services and Lazada showing significant progress [82][89][107] Question: Take rate and CMR growth alignment - The gap between GMV and CMR growth is expected to narrow as monetization efforts ramp up, with new products like Quanzhantui driving improvements [91][109] Question: AI CapEx and ROI expectations - CapEx investments in AI are expected to continue at a high pace, with servers running at full capacity immediately upon deployment, indicating strong ROI [118][135] Question: Open-source AI models and their impact - Alibaba's open-source large language models align with its cloud strategy, providing developers with more control and optimization opportunities [132]

Alibaba stock is back to 2016 prices.In this video, I will talk about Alibaba (BABA 2.33%), review its recent earnings report, and explore whether it's worth buying. Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were from the trading day of Aug. 14, 2024. The video was published on Aug. 15, 2024. ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Chinese e-commerce giant Alibaba reported a 29 percent fall in quarterly profit on August 15, 2024, as it battles sluggish consumption during an economic slowdown. Chinese e-commerce giant Alibaba reported a 29 percent fall in quarterly profit on Thursday as it battles sluggish consumption during an economic slowdown. Net inco ...

Alibaba Group Announces June Quarter 2024 Results Hangzhou, China, August 15, 2024 – Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988 (HKD Counter) and 89988 (RMB Counter), "Alibaba" or "Alibaba Group") today announced its financial results for the quarter ended June 30, 2024. "Our results this quarter demonstrated our strategy at work. Our focus on enhancing user experience by offering quality products at attractive prices with great service led to stabilizing market share of Taobao and Tmall Group ...

Signage at the Alibaba Group Holding Ltd. headquarters in Hangzhou, China, on Friday, Aug. 2, 2024.Alibaba missed top and bottom line expectations for the June quarter of 2024 as it continues to face headwinds in its core e-commerce business amid rising competition and a cautious Chinese consumer.Shares of Alibaba fell around 3.20% at 06:43 a.m. in premarket trade in the U.S.Here's how Alibaba did in the June quarter versus LSEG estimates:Revenue: 243.24 billion Chinese yuan ($34.01billion) versus 249.05 bi ...

These professional investors are finding value in China, energy, and video games.Following billionaires for investment ideas can help you avoid a lot of mistakes. These professionals usually have a long career of picking stocks that beat the market's average return, and importantly, they have access to resources to assist in their research that individual investors don't have.David Tepper of Appaloosa Management, CEO Warren Buffett at Berkshire Hathaway, and Chase Coleman of Tiger Global Management all have ...

9 Alibaba Group Holding (BABA US) According to our estimates, the share of T&T in China's e-commerce market measured by GMV declined from 71.4% in 2018 to 39.4% in 2023, and could reach 37.2% in 2024, indicating a stabilization of share loss (2024: - 2.2pp; 2023: - 5.0pp). Over the past five years, we note two types of platforms have placed severe competitive pressure on Taobao and Tmall: 1) content-based e-commerce platforms led by Douyin and Kuaishou; and 2) Pinduoduo. Fig.7: China - e-commerce market sha ...

As we enter August 2024, the allure of stocks from companies in China remains strong among savvy investors looking for substantial growth opportunities to buy on the dip. Over the past few years, the Chinese market has experienced its share of volatility. It has been influenced by regulatory changes, geopolitical tensions and macroeconomic shifts. However, these dips have often presented attractive entry points for those willing to embrace the inherent risks for potentially high rewards.Currently, several f ...

For most investors, the best fit for their capital is a passive index fund or mutual fund, which outsources their financial future to the hands of the stock market, often the S&P 500. While this is the surefire way to build capital over the long term, another way could provide a faster path to wealth without necessarily added risks. Warren Buffett understood this.By picking individual stocks, as long as they fit certain profitability and growth criteria, Buffett grew his wealth at over 20% a year for severa ...