CMB International Global Markets | Equity Research | Company Update PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG: RESP CMBR OR http://www.cmbi.com.hk1 PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE 2 Taobao and Tmall Group (38.5% of 4QFY24 revenue) In 4QFY24, revenue generated from Alibaba International Digital Commerce Group (AIDC) was RMB27.4bn, up 45.1% YoY, among which international commerce retail revenue was up ...

Shares of the Chinese tech company fell after its earnings report came up short.Shares of Alibaba Group (BABA -6.02%) were pulling back today after the Chinese tech giant delivered another disappointing earnings report. Profits came in below expectations even while it delivered moderate revenue growth.As a result, the stock was down 6.7% as of 3:25 p.m. ET. Alibaba whiffs on earningsThe owner of Taobao and Tmall said revenue in the quarter jumped 7% to $30.7 billion, which topped estimates at $30.4 billion. ...

Tech stocks gained in intraday trading Tuesday, with the S&P 500 Information Technology Sector Index up 0.7% as of 2:30 p.m. ET Tuesday, while the broader S&P 500 was up 0.3%, and the tech-heavy Nasdaq rose 0.6%. Alibaba Group (BABA) American depositary receipts (ADRs) tumbled after the Chinese e-commerce giant reported its profit plunged 86%, while BlackBerry (BB) shares took off as the cybersecurity firm benefited from the resurgence of the meme-stock craze that roiled the markets in early 2021. Shares o ...

Amid Alibaba’s declining profits, the eCommerce giant is seeing its online shoppers’ spending habits depend heavily on how trustworthy they feel the platform is.On a call with analysts Tuesday (May 17) discussing the Chinese multinational technology company’s most recent quarterly earnings report, CEO Eddie Wu spoke to how efforts to instill confidence in shoppers are paying off.“Our investments in … elevating the user experience have received positive consumer feedback,” Wu said. “We’ve seen tangible resul ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Key TakeawaysAlibaba Group Holding's ADRs sank Tuesday after the Chinese tech giant posted an 86% plunge in fiscal fourth-quarter net income on the back of investment losses.Both quarterly net income and earnings per share were below forecasts.Revenue beat estimates as its core Taobao and Tmall online shopping businesses posted a 4% sales gain. American depositary receipts (ADRs) of Alibaba Group Holding (BABA) sank as the Chinese e-commerce giant's profit plunged on investment losses. Alibaba said its fisc ...

Financial Data and Key Metrics - Local Service Group revenue grew 19% to RMB 14.6 billion, driven by Ele.me and Amap order growth [1] - Local Service Group adjusted EBITDA loss narrowed to RMB 3.2 billion from RMB 4.1 billion YoY [1] - Alibaba International Digital Commerce Group revenue increased 45% to RMB 27.4 billion [5] - International Commerce Retail Business revenue grew 56% to RMB 22.3 billion [5] - Cloud Intelligence Group revenue increased 3% to RMB 25.6 billion [41] - Taobao and Tmall Group adjusted EBITDA was RMB 38.5 billion, slightly down from RMB 39 billion YoY [36] - Total consolidated revenue for the quarter was RMB 221.9 billion, up 7% YoY [81] - Consolidated adjusted EBITDA decreased 5% to RMB 24 billion [81] - Non-GAAP net income was RMB 24.4 billion, down 11% YoY [81] Business Line Performance - Ele.me and Amap drove Local Service Group revenue growth [1] - AliExpress Choice and Trendyol's cross-border business contributed to AIDC's revenue growth [5][42] - Core public cloud offerings, including Elastic Compute, Database, and AI products, recorded double-digit revenue growth [41] - Taobao and Tmall Group achieved double-digit GMV growth, supported by increased purchase frequency [51][65] - Cainiao revenue grew 30% to RMB 24.6 billion, driven by cross-border fulfillment services [104] Market Performance - AIDC's cross-border business saw significant growth, especially in the Gulf region [34] - Trendyol achieved rapid growth in the Middle East, driven by Ramadan promotions [146] - AE Choice orders accounted for 70% of total orders on AliExpress, with improved delivery completion rates [76] - South Korea and Europe are key markets for cross-border logistics and local warehouse development [147][160] Strategy and Industry Competition - Company focuses on user-first, AI-driven strategy to enhance consumer experience and drive GMV growth [33][51] - Investments in AI infrastructure and public cloud adoption are key to future growth [59][72] - AE Choice model is optimized for light and small packages, leveraging cross-border logistics [161] - Integration of Tongyi large language model with Alibaba Cloud aims to create a premier AI development platform [54][22] Management Commentary on Operating Environment and Future Outlook - Management expects double-digit revenue growth for Alibaba Cloud in the second half of FY2025 [72] - AI-related revenue is expected to continue triple-digit growth, driven by demand from foundational model companies and internet sectors [53] - Company is confident in achieving strong and sustainable growth in core businesses, supported by positive initial results [113] - Management sees potential for increased consumer spending, driven by high household cash savings and improving confidence [130][154] Other Important Information - Company declared an annual cash dividend of $1 per ADS and a one-time extraordinary cash dividend of $0.66 per ADS, totaling approximately $4 billion [4] - Share repurchase program will continue through March 2027, with $30 billion remaining for deployment [28] - Company plans to complete primary listing in Hong Kong by the end of August 2024 [105] Q&A Session Summary Question: What is driving the GMV growth and how does the company plan to narrow the gap between GMV and CMR growth? - GMV growth is driven by investments in user experience and price competitiveness, with double-digit growth observed in Taobao and Tmall [67][110] - New monetization tools are expected to enhance CMR growth, with a lag of a few quarters before catching up to GMV growth [153][120] Question: What are the key drivers for Alibaba Cloud's expected double-digit growth in the second half of FY2025? - AI-related products and public cloud adoption are the primary drivers, with low-margin project-based revenues expected to diminish [96][97] - Strategic partnerships with foundational model companies and the release of Tongyi's 110 billion parameter model support growth [71][72] Question: How does the company view the investment scale and trends in international e-commerce? - Company is focused on optimizing the AE Choice model and improving unit economics, with investments in cross-border logistics and local warehouses [123][160] - Semi-consignment and full-consignment models are tailored to different categories and markets, with a focus on cost efficiency [157][147] Question: What are the company's plans for shareholder returns and how will the share repurchase program evolve? - Share repurchase program is a long-term plan, with $30 billion remaining for deployment through March 2027 [28] - Company is committed to returning value to shareholders through a combination of share repurchases and cash dividends [159][80] Question: How does the company differentiate its marketing products from competitors? - Taobao merchants achieve the highest ROI on marketing investments compared to other platforms, with a focus on optimizing algorithms and enhancing ROI [11][143] - New monetization tools are being rolled out gradually to improve merchant adoption and spending [94][153]

Alibaba Group Holding Ltd (NYSE:BABA) stock is down 5.9% at $79.60 at last check, after the e-commerce company's profit for the fiscal fourth quarter plunged 86%, missing analysts' estimates amid cautious consumer spending in China. Revenue still impressed, however, thanks to a focus on low-cost goods.stock is down 5.9% at $79.60 at last check, after the e-commerce company's profit for the fiscal fourth quarter plunged 86%, missing analysts' estimates amid cautious consumer spending in China. Revenue still ...

Key PointsAfter disappointing earnings, Alibaba's shares were down 5% in the pre-market session.Wall Street is hiding the facts, as the company's cash flow remains as strong as ever, as seen in a dividend payment and $25 billion in buybacks.Citigroup's analysts see over 50% upside in the stock; a Chinese economic comeback could push it even higher.5 stocks we like better than Amazon.comShares of Alibaba Group NYSE: BABA fell by as much as 5% in the pre-market session of May 14th; the reaction came after a w ...

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: Alibaba is one the biggest players in China's tech industry. Chinese e-commerce giant Alibaba announced Tuesday a modest increase in annual revenue, as the firm pursues a major overhaul and regulatory curbs on the country's tech sector are relaxed. The Hangzhou-based company is one of the biggest players in China's tech indust ...