Alibaba investors had it tough in 2021. So far, 2022 is shaping up to be better.
Greg Baker/AFP via Getty Images
Alibaba stock was plunging Thursday after the Chinese tech giant reported earnings, but the results themselves weren’t completely to blame.
The e-commerce and cloud computing powerhouse posted revenue of $38.1 billion for the final three months of 2021, which Alibaba reports as its third quarter of fiscal year 2022. Earnings before interest, taxes, and amortization (EBITA)—the preferred adjusted measure of profit—was $7 billion, delivering earnings per share of $2.65.
The results were largely in line with what had been expected, with revenue coming up slightly short even as earnings per share outperformed. Estimates were for revenue of $39 billion, with earnings of $7 billion delivering EPS of $2.52, according to analysts surveyed by FactSet.
Alibaba (ticker: BABA) shares were 4.3% lower in U.S. premarket trading. The company’s Hong Kong-listed stock (9988.H.K.) fell 6.7% Thursday, before the group released earnings.
The fall in the share price is not entirely linked to earnings. Stocks around the world are plunging Thursday as investors react to the Russian invasion of Ukraine.
Write to Jack Denton at [email protected]
