Number three, we are increasing our share repurchase program from USD 10 billion to USD 15 billion. Our strong profit and cash flow generation capability gives us the internal resources to focus on long-term value creation. In the coming quarters, we'll continue to invest additional capital into programs that support our merchants and developing new businesses in strategic growth areas that will help us increase consumer wallet share and penetrate into new addressable markets. Number two, our investments in new strategic growth areas remain on target, and all the businesses we have invested are showing rapid growth. “ Number one, our guidance for the fiscal year remains unchanged. Commenting on the quarterly performance and the outlook for the company, Chief Financial Officer Maggie Wu said: The company expects to generate over 930 billion yuan in revenue for fiscal 2022. The cloud computing segment, on the other hand, reported 29% year-over-year growth in revenue, but growth slowed from the previous quarter due to a decline in sales since an unnamed top customer stopped using the overseas cloud services for their international business due to non-product related issues. The digital, media and entertainment segment's revenue grew 15% year over year, driven by the increase in revenue from Youku, Alibaba Pictures and other entertainment businesses. Taobao Deals and Idle Fish continued to record robust user growth as well, boosting revenue. In its China retail marketplaces, the company continues to make strategic investments to improve the consumer experience and to support merchant operations. Other retail revenue in China increased 82% year over year as well, owing to the consolidation of Sun Art and considerable growth from Tmall Supermarket and Hema. The consumer segment climbed 35% year over year, driven by the growth of the online physical goods segment of its retail platform, higher revenue from new monetization formats such as recommendation fees and an increase in the average unit price per click in search monetization. Global annual active consumers across the Alibaba ecosystem reached 1.18 billion, an increase of 45 million from the previous quarter. Net income came in at 43.4 billion yuan, up 10% year over year. From a valuation perspective, it is among the very few profitable tech companies that are trading at a reasonable price.Įarnings recap and the outlook for AlibabaĪlibaba reported 206 billion yuan in revenue, aided by the strong growth of its Chinese e-commerce business. These concerns have depressed expectations creating a divergence between those and what we believe are very strong fundamentals.”Īlibaba is valued at a forward price-earnings ratio of 20, which makes the company one of the most cheaply valued global tech giants today. Recent press reports suggest the government is partnering with Alibaba to purchase a stake in troubled indicating BABA could be back in the good graces of the government. The government’s focus has shifted elsewhere, most recently to Didi who just barely IPO’d. It has already been fined and agreed to changes in how it operates. New headlines surface daily on the aggressive new approach by the Chinese government. The stock is down 35% from its highs hit in October 2020 primarily on fears regarding China’s regulatory crackdown. “ Alibaba, one of our largest growth holdings, exemplifies our approach here. 3, portfolio manager Samantha McLemore wrote: Miller Value Partners ( Trades, Portfolio), led by investing guru Bill Miller, believes Alibaba is being unduly punished for regulatory scrutiny, but noted the worst is over for the company. The strong financial performance has failed to lift Alibaba shares higher in the recent past as investor focus has been fixed on the regulatory crackdown on Chinese tech companies. Revenue fell short of expectations, but grew more than 33% year over year, indicating the company is still growing in leaps and bounds. 3, the company reported earnings of 16.60 yuan ($2.49) per share for the first quarter of fiscal 2022, exceeding analysts' expectations of 14.29 yuan per share. Regardless, Alibaba's outstanding operating performance has persisted, with the company's core business growing at a fast pace while retaining solid profitability. A $2.8 billion fine levied by China's State Administration for Market Regulation under its Anti-Monopoly Law had a significant impact on the company's fiscal fourth-quarter 2021 earnings. BABA, Financial) declined more than 8% in July after Chinese regulators tightened their grip on tech titans on account of anticompetitive practices and data security issues.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |