Alibaba pre-market: sales and profits disappoint - expert analyzes the effects

Alibaba pre-market: sales and profits disappoint - expert analyzes the effects

According to a report by www.finanzen.net,
The Chinese Internet company Alibaba reported a profit of 2.37 yuan per share in the fiscal quarter ended December, which is less than in the same period last year. This was just below analyst expectations of 2.39 yuan per share. Revenue of 260.3 billion yuan was also slightly lower than expected, as forecasts were for 260.7 billion yuan. As a result, the company announced that it would expand its share repurchase program. Alibaba shares closed 5.87 percent lower at $73.64 on the NYSE.

As an economist, it is important to note that Alibaba's disappointing numbers could have an impact on the stock market and retail sector. The lower profits and sales indicate that the company may face challenges in terms of sales growth and profitability. This could affect investor confidence in the company and lead to a short-term downward trend in share prices.

Additionally, the announcement of the share buyback program could indicate that the company is trying to regain investor confidence and support the share price. This could mitigate the impact on the market in the short term. Still, long-term investors may be concerned about Alibaba's performance and be more cautious about investing in the company.

Overall, recent developments at Alibaba could lead to increased volatility in the stock market and affect consumer confidence in the company. It is important to closely monitor the company's future performance as it could also impact other Chinese tech giants and the global retail market.