Alibaba's Revenue Falls Short of Expectations
Alibaba's Revenue Growth Slows
Alibaba Group Holding Ltd. posted a disappointing 4% rise in revenue in its latest fiscal quarter. This marks a significant slowdown from the previous quarter's 10% growth and falls short of analyst expectations.
The company's domestic e-commerce business, which accounts for the majority of its revenue, saw growth slow to just 4%. This is a sharp drop from the 10% growth reported in the previous quarter.
Sluggish Consumer Spending
Analysts attributed the revenue shortfall to sluggish consumer spending in China. The country's economy has been slowing down in recent months, and consumer confidence has been weak.
Ongoing Revival Efforts
The disappointing revenue figures come despite Alibaba's ongoing efforts to revive growth. The company has been investing heavily in new businesses, such as cloud computing and artificial intelligence.
Alibaba has also been trying to improve its core e-commerce business by investing in logistics and customer service. However, these efforts have yet to yield significant results.
Stock Price Falls
Investors reacted negatively to the news, sending Alibaba's stock price down by more than 5%. The stock has been under pressure in recent months due to concerns about the company's growth prospects.
Revenue Misses Estimates
Alibaba's revenue missed analyst estimates by a significant margin. Analysts had expected the company to report revenue of approximately 245 billion yuan, but the actual figure came in at just 243.2 billion yuan.
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