Alibaba warns of slower growth after missing Wall Street earnings estimates
The company also said sales for the current financial year will be up 20% to 23% from a year ago. Analysts are predicting a growth of nearly 28%.
In its earnings release, Alibaba cited “regulations” and “the regulatory environment affecting Alibaba’s business” as well as “regulations and concerns about privacy and protection.” data” are some of the uncertainties facing the company.
Earlier this year, Alibaba was forced to cancel plans to take its Ant Group subsidiary, which owns tech giant Alipay, public.
Even so, Alibaba’s massive cloud business continues to deliver impressive results. That unit’s revenue was up 33% from a year ago. Alibaba Cloud has also helped the company expand beyond China, an important goal.
“Alibaba continues to invest firmly in our three strategic pillars of domestic consumption, globalization and cloud computing to establish a strong foundation for our long-term goal of sustainable growth. firmly into the future,” Alibaba Chairman and CEO Daniel Zhang said in a statement.
Part of that may be due to the regulatory environment, but Alibaba is also facing stiffer competition.
“Consumers and business partners increasingly trust and rely on JD, and we were able to surpass industry growth in China in the third quarter,” said JD.com president Lei Xu. know in the income statement.
Shares of JD.com are up more than 20% in the past six months while Alibaba shares are down more than 20% in the same time frame.