The Chinese internet giant Ali Baba (BABA) early Thursday reported September quarter results that topped earnings but showed another quarter of weak revenue performance. Still, BABA stock surged.
The e-commerce company reported adjusted earnings of $1.82 per US share on revenue of $29.12 billion. Analysts had expected Alibaba to report earnings of $1.70 per share on revenue of $29.6 billion. The results are for its second fiscal quarter ended Sept. 30. On a yearly basis, Alibaba’s profit grew 15% while sales increased 3%. In the prior quarter, revenue fell 4%.
For years, Alibaba has consistently recorded double-digit revenue growth as one of China’s fastest growing internet companies. But strict Covid-19 lockdowns amid tight government regulations and a deteriorating global economy have crippled its business. Additionally, Alibaba has been hit by supply chain issues and rising logistics costs.
BABA stock market action
BABA stock jumped 7.8%, closing at 84.26 on stock market today.
“The uncertainties of the global landscape have only strengthened our resolve to focus on building capabilities that will generate sustainable, high-quality growth for our customers and our own business over the long term,” said the CEO of Alibaba, Daniel Zhang, in a statement. Alibaba Earnings Release.
Over the past year, BABA stock has fallen 35%.
Other Chinese tech companies reporting this week include Tencent Holdings (TCEHY) on Tuesday and JD.com (J.D.) Friday. Tencent reported third quarter results which exceeded estimates, but sales were a little light.
Earlier this week, BABA shares and shares of other Chinese internet companies such as JD.com, Tencent and Baidu (BIDU) received a boost following reports that President Joe Biden and Chinese leader Xi Jinping had constructive talks on trade and political issues at the G20 summit in Bali.
Please follow Brian Deagon on Twitter at @IBD_BDeagon to learn more about tech stocks, analysis and financial markets.
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