China slowdown weighs on revenue growth at internet giant Alibaba
Internet giant Alibaba saw its revenue growth slow in the final three months of previous year, in quarterly results likely to stir up concerns over the weaker China market, recently signalled to by United States tech giants.
Chinese e-commerce company Alibaba on January 30 reported revenue of 117 billion yuan ($17.4 billion) for the three months to December, an increase of 41 percent from the same quarter past year. Bloomberg analysts expected revenue of Dollars 17.77 Billion and earnings of USD 1.68 per share.
Alibaba's cloud business exited the fourth quarter nearing a $4 billion annual revenue run rate.
Tsai also brushed aside concerns about the trade war, saying that people were overly anxious about its impact on China's economy. Its net profit increased 37% year-on-year to 33.05 billion yuan.
Revenue for its cloud business rose 84 per cent year-on-year to 6.6bn yuan, while its entertainment and media business rose 20 per cent to 6.5bn yuan.
Alibaba derives more than 90% of its sales from China and any signs of a worsening Chinese economy is very likely to impact the Chinese-dependent company. The firm had projected for a ¥119.4 billion in sales for the quarter.
Alibaba shares is moving a bit wildly in pre-market as shares gained 2% initially on the back of the earnings headline before slipping back to flat levels.
E-commerce giant Alibaba reported quarterly profit far above market expectations, sending its shares up 6 percent.
Alibaba's earnings announcement made no mention of the country's economic slowdown, as Chief Executive Officer Daniel Zhang focused on the growing contribution of forward-looking segments like cloud computing and data.
Anticipating headwinds from economic uncertainty, Alibaba had lowered its revenue outlook for its financial year ending March even before the top sales season.
Last year Alibaba netted a record $30-billion from Singles' Day.
China's economic growth in 2018 slowed to its weakest in nearly 30 years, with growth expected to decline even further this year.
The strong growth in Alibaba's cloud computing was primarily driven by increased spending from enterprise users.
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