Movements Chinese e-commerce giant Alibaba in Hong Kong fell nearly 7% today after third fiscal quarter (October-December) results were worse than expected by analysts. Specifically, mid-session Alibaba shares fell 6.81% to around 69.8 Hong Kong dollars ($8.93, 8.27 euros); This was a 32.56% lower price than a year ago.
The group’s quarterly turnover reached approximately 260,350 million yuan ($36,602 million, 33,931 million euros), up 5% year on year, while experts expected the figure to be around 261,250 million yuan, according to Hong Kong newspaper South China Morning. . This environment, which exactly belongs to Alibaba, reminds us that the digital conglomerate had an experience in the previous quarter. 9% annual increase in revenues.
Between October and December, Net profit fell 77% year-on-year According to the company, up to approximately 10,717 million yuan ($1,507 million, 1,397 million euros) due to changes in the market value of its investments and a decrease in operating turnover due to the deterioration of the intangible assets of the hypermarket chain Sun Art and the deterioration of the goodwill of the Youku video platform.
On its earnings call, Alibaba announced a $25 billion increase for its share repurchase program, which will generate approximately $35.3 billion for the next three fiscal years.
Group CEO Eddie Wu assured that the company’s results for the third quarter were “robust” and that the priority was now “reigniting” growth in core businesseselectronic commerce and cloud computing.
The tech company is immersed in the biggest restructuring plan in its history, which will split it into six units with the ability to go public separately, despite having crippled its Freshippo supermarket chain and canceled its ‘cloud’ business due to US sanctions. about semiconductors. South China Morning Post notes that logistics subsidiary Cainiao’s event is expected to take place this year.
Joe Tsai, president and co-founder of Alibaba, said in a statement on Wednesday that the above-mentioned problems in IPOs arise from current market conditions, because in his opinion, the value of businesses is not adequately reflected at the moment.