- Alibaba management approves additional buybacks worth $25 billion.
- BABA is trading lower as profits fall from last year, revenue growth slows.
- Alibaba shares continue to trade about 75% off their 2020 high of $319.
- Retail sales in China have slowed nationwide as a housing bubble deflates.
Alibaba (BABA), once a leading light among foreign-owned Chinese stocks, hit another snag on Wednesday. The Chinese e-commerce leader announced another earnings report, this time for the third fiscal quarter ending in December.
Shares of BABA fell 6% on Wednesday as adjusted earnings per share of the American depository ( EPADS ) came in at $2.67. That was slightly higher than the consensus, but below the $2.79 earned a year ago.
Alibaba Stock Earnings News
Alibaba’s revenue of $36.67 billion rose a modest 5% year over year and missed some consensus estimates while others. Management seemed clear-eyed about the once-dynamic company’s plight.
“Our top priority is to reignite the growth of our core business, e-commerce and cloud computing,” said Alibaba’s new CEO Eddie Wu. “We will increase investment in improving the core user experience to drive growth in Taobao and Tmall Group. and strengthen market leadership in the coming year.”
The company is in the process of splitting into six separate units, some of which are expected to eventually have their own IPOs. Two of the most important segments, Cloud Intelligence and Taobao & Tmall Group, increased their sales by only 3% and 2% annually.
Diluted earnings per ADS, similar to GAAP results, came in at $0.80 in the fiscal third quarter. That was down from $1.49 in the previous quarter ended in September.
The domestic retail segment grew by just 1% year-on-year, but the much smaller domestic wholesale business saw sales increase by 23%. Meanwhile, the International Digital Commerce segment, which manages Lazada, Alibaba.com and AliExpress, posted a 44% increase in annual revenue.
Interestingly, Alibaba’s board of directors signed off on an amendment to its $25 billion share buyback policy, but the market shuddered at the extremely large-scale announcement. This buyback would reduce current shares outstanding by about 12.5%.
Nio is an electric vehicle designer and manufacturer based in Shanghai, China. The company, formerly known as NextEV, changed its name to Nio in 2017. Nio trades under the symbol NIO on the New York Stock Exchange (NYSE) and under the symbol 9866 on the Hong Kong Stock Exchange. The company was founded in 2014 but went public on the NYSE in September 2020 with an initial public offering of $1.8 billion. William (Bin) Li is the CEO of Nio, which he co-founded with President Lihong Qin, another Chinese business executive.
The main difference from other major EV brands like Tesla is that the Nio offers battery swapping technology in addition to the usual charging options. These swap stations allow drivers to swap their batteries for fully charged, identical batteries in less than five minutes, allowing owners to drive long distances without having to stop for an hour to recharge like most other EVs. At the end of 2022, Nio had 1,305 battery exchange locations and built its first exchange station in Norway in May 2022. The goal for the customer is to reduce range concerns.
Nio began its reign with the EP9 sports car back in 2016, and the vehicle is still being produced on a small scale. Since then, Nio has split into more traditional tariffs. The ES8 was introduced in 2018. It is a full-size SUV with a range of 311 miles. The ES6 SUV dropped the following year and has a range of 379 miles. with versions capable of a range of 621 million, the ES7 and EC7 arrived in 2022 and 2023, respectively.
Yes. While the vast majority of Chinese automakers focus exclusively on the Chinese market, Nio began its foray into Europe at the end of 2021. After launching in Norway, Nio began entering the German, Danish, Dutch and Swedish markets in 2022, with plans to expand throughout the rest of the market . decade. Although not yet sold in the US, Nio vehicles are being tested in California as part of the state’s autonomous driving program.
Alibaba stock forecast
Alibaba shares have traded largely sideways for most of the past two years following its massive collapse in 2021. Shareholders have become accustomed to BABA stock trending in the $60s and $70s, the prices at which it traded a decade ago.
The 50-day simple moving average has remained below its 100-day counterpart since October 16 of last year. With the 3Q fiscal in the bag, there are no short-term catalysts for BABA. Even an extremely generous $25 billion buyback announcement failed to whet appetites.
Short-term support could hold at $73.28, a long-term stronghold from March 2022. Further down, the $67 level from January could help again. Otherwise, bulls may have to wait for an entry at $63.40, a level that saw moderate respect in October 2022.
BABA Daily Stock Chart