Alibaba's quarterly revenue beats despite China's sputtering economy

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China's Alibaba Group Holding reported its strongest quarterly revenue growth in almost two years on Thursday as its domestic e-commerce unit focuses on low-cost products to attract consumers amid a sober economic environment.

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Published by

11 Aug 2023

The Chinese e-commerce giant posted first-quarter revenue of 234.16 billion yuan ($32.29 billion), up 14% from the prior-year quarter which was hit by strict pandemic lockdowns. The figure beat analysts' estimates of 224.92 billion yuan, according to Refinitiv data.

The company's U.S.-listed shares rose as much as 5.6% to $100.1 in early trading.

«Most investors had expected an okay quarter, but the magnitude of the outperformance, especially on the profit beat likely exceeded most expectations,» said Alicia Yap, an analyst at Citi Bank. Alibaba's net profit rose 51% year-on-year.

The latest revenue figure represents an improvement from flat to 3% growth in the past four quarters.

However, fears have grown about China's economy, which has faltered after an initially brisk recovery from the lifting of COVID curbs late last