Hong Kong trading gave a mixed signal as Alibaba’s stock slipped about 7% following the release of fiscal third-quarter results that did not meet many analysts’ expectations. By midday, the stock hovered near 69.8 Hong Kong dollars, roughly $8.93, or 8.27 euros, representing a decline of around 32.6% from the same period a year earlier.
The group reported quarterly revenue of about 260,350 million yuan, roughly $36,602 million (33,931 million euros), up about 5% year over year. Analysts had penciled in revenue closer to 261,250 million yuan, according to a report in the Hong Kong press. The figure underscored a difficult operating environment for Alibaba and echoed the softer growth pace seen in the prior quarter, when year-over-year revenue rose around 9%.
Net profit for the October–December window plunged 77% year over year to about 10,717 million yuan, or around $1,507 million (1,397 million euros). The company pointed to shifts in the market value of investments and a weaker operating footprint, driven by impairment charges tied to the Sun Art hypermarket chain’s intangible assets and a decline in goodwill associated with the Youku video platform. These factors weighed on profitability even as revenue growth held firm in some segments.
During the earnings call, Alibaba announced a $25 billion increase to its share repurchase program, projecting total returns of about $35.3 billion over the next three fiscal years. Management framed the move as a way to bolster shareholder value while the company continues its strategic restructuring.
Group CEO Eddie Wu described the quarter as solid, emphasizing a renewed focus on Alibaba’s two core pillars: e-commerce and cloud computing. He cautioned that sustained growth would depend on boosting efficiency, expanding the merchant and consumer ecosystems, and accelerating innovation across the cloud platform.
Alibaba remains in the midst of a historic transformation, reorganizing into six independent units that could pursue separate public listings in the future. The restructuring follows a period of strategic retrenchment, including the downsizing of the Freshippo supermarket chain and a reevaluation of non-core projects, such as certain cloud initiatives. External pressures from US sanctions and global supply-chain dynamics have weighed on progress in areas like semiconductors. In parallel, logistics arm Cainiao is expected to stage a prominent event later this year, signaling continued investment in delivery and fulfillment capabilities.
Joe Tsai, Alibaba’s president and co-founder, reiterated in a recent statement that IPO challenges stem from broader market conditions. He argued that the true value of Alibaba’s businesses has yet to be fully recognized by the market, framing ongoing investor discussions around capital allocation and strategic priorities.
Overall, the third quarter presented a mixed picture: topline growth persisted, but profitability cooled, and the ambitious six-unit restructuring added a new layer of complexity to near-term performance. Investors will be closely watching how the six-unit framework unfolds, how efficiently each unit scales, and how the company balances ongoing investments in growth with the imperative to deliver steady earnings.
Notes: Figures reflect reported numbers and related commentary from company disclosures and market briefings. Market interpretations are based on public filings and contemporary coverage from reputable financial outlets.