Alibaba shares dip as qtrly earnings loom amid China weakness
Investing.com-- Hong Kong-listed shares of Alibaba Group (HK:9988) (NYSE:BABA) fell on Thursday in anticipation of a quarterly earnings report which is expected to show whether the e-commerce giant weathered a downturn in China.
Alibaba’s shares fell 1.7% to HK$81.80, tracking a broader decline in the Hang Seng index. Alibaba's shares are down about 7% so far in 2023, compared to a 11% decline in the Hang Seng.
The firm is expected to post earnings per share of about 15.39 yuan, according to Investing.com estimates, against a revenue of 224.95 billion yuan ($31 billion), for the three months to September 30.
Any results in line with the estimates will represent profit and revenue growth for the company, which has been otherwise grappling with a sustained decline in China, the firm’s biggest market.
The e-commerce giant logged steady profit growth this year as its domestic unit targeted low-cost products to attract more customers. Revenue also benefited from easing supply chain issues, after China lifted most anti-COVID restrictions earlier this year.
But recent economic indicators from China have raised concerns over just how resilient consumer spending is in the country. China fell back into disinflation in October, and had also briefly entered disinflation during the September quarter.
Economic activity in the country has struggled to pick up this year, which in turn has kept consumers largely wary of making big purchases. Discount and low-cost retailers, however, have benefited from this trend.
Alibaba’s competitor JD.com (HK:9618) (NASDAQ:JD) logged better-than-expected quarterly results on Wednesday, brewing some optimism over a similar showing from Alibaba. JD’s shares rose nearly 3% in Hong Kong trade.
But
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