Alibaba Reports Quarterly Disappointing Profit, Halts Full Spin-Off of Cloud Group
In the latest financial report, Chinese e-commerce giant Alibaba revealed that its quarterly profit fell below market expectations. This news led to a drop of over 8.3% in its U.S. shares during pre-market trading.
Key figures from the September quarter revealed that the company’s net income attributable to ordinary shareholders was 27.7 billion yuan, lower than the expected 29.7 billion yuan, while revenue was 224.79 billion yuan, just shy of the estimated 224.3 billion yuan.
A notable development is Alibaba’s decision to abandon the complete spin-off of its Cloud Intelligence Group due to U.S. chip export restrictions. The company cited challenges in obtaining necessary chip supplies from U.S. firms as a reason for curtailing the spin-off plans. Instead, Alibaba will focus on developing a sustainable growth model for the Cloud Intelligence Group in light of the uncertain circumstances.
Additionally, Alibaba announced that it will issue its first-ever annual dividend in 2023. These financial results mark the first under the leadership of new CEO Eddie Wu and chairman Joe Tsai following a management reshuffle.
Investors are closely monitoring Alibaba’s progress following its reorganization into six individual business units, as well as the company’s plans for the initial public offerings of its cloud computing and logistics divisions.
These results also provide insight into the health of the Chinese consumer, amid concerns about a tepid economic rebound and various structural challenges facing the country’s recovery.
As the situation develops, further updates to this story will be provided.
I have over 10 years of experience in the cryptocurrency industry and I have been on the list of the top authors on LinkedIn for the past 5 years. I have a wealth of knowledge to share with my readers, and my goal is to help them navigate the ever-changing world of cryptocurrencies.
