Alibaba reported strong earnings and revenue that beat market estimates for its fiscal first quarter, which sees its stock soar.
Specifically, the Chinese e-commerce giant reported revenue of 205.55 billion yuan ($30.68 billion) against estimates of 203.19 billion yuan.
On the profitability side, net income came in at 22.73 billion yuan versus a forecast of 18.72 billion yuan.
Alibaba reported earnings of 11.73 yuan in its US shares, well beating analysts’ estimates of 10.39 yuan, although year-to-date they were down 29% from the same period last year.
Which is of course justified to a large extent by the difficulties the Asian giant was faced with, mainly the new outbreak of the pandemic in China which led to strict lockdowns of large cities such as Shanghai, burdening the country’s economy in general.
However, as lockdowns were gradually lifted in late May and early June, Alibaba’s growth began to accelerate.
“After a relatively sluggish April and May, we saw signs of recovery in our operations in June,” said company CEO Daniel Zhang.
In this climate, the company’s stock is rallying by 5.5% in pre-conference trading on Wall Street and +5.1% in Hong Kong.
Source: Capital
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