Once the glittering star in the cosmos of corporations, e-tailing giant Alibaba has slightly lost its sheen over the years, especially since company boss Jack Ma's alleged fallout with the Chinese regime. The company released its quarterly earnings on Thursday.
Company Revenue Falls Behind Estimates
In the revenue numbers released for the first quarter, the company accrued revenue of USD 33.98 billion. According to many reports, these numbers fell behind the estimates.
The company was founded by Jack Ma. He stepped as teh company CEO in 2013. | Image: File photo
As per some estimates, the company was expected to make a total of around USD 34.72 billion.
The MNC's domestic revenue generation in mainland China also took a hit and fell by 1 per cent. This is largely attributed to the sluggish consumption rate in China. A factor that has placated the larger Chinese economy itself.
The company shares, listed on the coveted Hong Kong Stock Exchange, however, did not appear to be severely affected by the developments in the balance sheet.
The stocks, which started on a cautious note in the early hours of trade on Friday, August 16, eventually climbed the ladder and started trading in greener territory.
Company shares, listed in Hong Kong. |
Alibaba Shares Rise
The company's share rose by over 4 per cent. At the time of writing (09:20 IST), the stock price of Alibaba was 4.19 per cent or HKD 3.20, climbing its way to HKD 79.60 per share.
This could be attributed to the company's attempts to expand its footprint and utilise its inventory.
To attain this, the company has resorted to extensive discounting and promotions to attract shoppers, pressuring margins across the retail sector.
Another positive development from the company comes from one of its verticals. Like many big tech companies around the globe, the company has expanded its cloud business. The company churned a revenue growth of 6 per cent, amounting to about USD 3.7 billion. These developments have perhaps aided its prospects for the future.
