Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Alibaba Group Holding Limited    BABA

ALIBABA GROUP HOLDING LIMITED

(BABA)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Alibaba Online Orders Amid Coronavirus Fuel Sales Recovery -- 2nd Update

08/20/2020 | 08:38am EST

By Liza Lin and Dave Sebastian

Alibaba Group Holding Ltd. said fiscal first-quarter profit more than doubled from the same period a year ago, as the coronavirus outbreak led to more shoppers buying daily necessities and other products online.

Alibaba, China's most valuable technology company, reported net income of 47.6 billion yuan ($6.7 billion) for the quarter ending June. It also said revenue rose 34% to 153.8 billion yuan, exceeding expectations of 148 billion yuan by analysts polled by FactSet.

The Hangzhou-based technology giant, which runs two of China's most popular e-commerce websites, benefited from a shift in consumers' shopping habits after the coronavirus outbreak earlier in the year led more Chinese to shop online. China's economy also rebounded from a contraction in the first three months of 2020, growing more than 3% in the second quarter, making it the first major economy to return to growth since the start of the pandemic.

"The coronavirus has been good for Chinese e-commerce players," said Steven Zhu, an analyst at research firm Pacific Epoch, who added that the outbreak accelerated a move by older consumers and those in smaller Chinese cities to shift their buying from physical stores to online platforms. "Once you switch, you don't switch back."

Thursday's results mark a recovery from a tepid January-to-March earnings quarter, when Alibaba's profits tanked as the pandemic affected the value of its public investments. Earnings in that quarter fell 88%. Beyond its retail marketplaces, the company also runs a cloud services division and digital media platforms.

Even so, Chinese consumer spending remains relatively strong. Alibaba, which counts more than 800 million monthly active users on its mobile retail platforms, reported China commerce retail sales grew 34% from a year ago to 101 billion yuan.

"Our domestic core commerce business has fully recovered to pre-Covid-19 levels across the board," Alibaba's Chief Financial Officer Maggie Wu said in a statement Thursday.

As the coronavirus led to widespread city lockdowns earlier this year, more Chinese consumers turned to e-commerce and their platforms to buy fresh food and groceries online to cook at home, Daniel Zhang, Alibaba's chairman and chief executive officer, told investors in May. This helped offset a drop in spending on clothing and cosmetics, he said.

In the June quarter, the company also benefited from a midyear shopping festival for which it ran numerous marketing campaigns and dangled promotions to encourage spending.

The company has also introduced new ways to market its products to fight off competition from its rivals such as JD.com Inc., including live-streaming product demonstrations and sales pitches.

Another bright spot for the Chinese technology juggernaut was its loss-making cloud-computing division. Revenue in the segment grew 59% to 12.3 billion yuan in the quarter as more businesses ramped up efforts to digitize their operations. Alibaba's digital media and entertainment unit also posted a 9% rise in sales for the June quarter.

Adjusted earnings per American depositary share were 14.82 yuan. Analysts polled by FactSet were expecting 13.82 yuan a share.

Despite the strong showing, analysts say geopolitics and a fast ramp-up in the animosity between the U.S. and China continues to loom over on Alibaba's operations. Earlier this month, President Trump issued executive orders barring firms and people in the U.S. from transactions with Tencent Holdings Ltd.'s WeChat and Bytedance Inc.'s TikTok apps starting Sept 20. President Trump has said he is considering extending the ban to other Chinese companies.

Analysts from JPMorgan Chase & Co. said in an August report that geopolitical friction between the two major economies may negatively impact the growth of Chinese internet companies such as Alibaba, Tencent Holdings and NetEase Inc. in the mid-to-longer term as they face hurdles to international expansion. Chinese companies may divert their growth efforts inward instead, leading to more aggressive competition and lower industry profits within China, they wrote.

Write to Liza Lin at Liza.Lin@wsj.com and Dave Sebastian at dave.sebastian@wsj.com

 

Stocks mentioned in the article
ChangeLast1st jan.
ALIBABA GROUP HOLDING LIMITED -0.53% 258.62 Delayed Quote.11.12%
JPMORGAN CHASE & CO. -0.77% 133.79 Delayed Quote.6.11%
NETEASE, INC., 0.63% 116.76 Delayed Quote.21.92%
SUN ART RETAIL GROUP LIMITED -3.43% 7.6 End-of-day quote.-3.55%
TENCENT HOLDINGS LIMITED 1.25% 691 End-of-day quote.22.52%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) 0.00% 6.4845 Delayed Quote.-0.49%
All news about ALIBABA GROUP HOLDING LIMITED
05:45aJACK MA : China Is Joining the Global Push to Rein In Tech Giants
DJ
01/22ALIBABA : Tmall Global helps global SMEs open online stores
AQ
01/21MARKET CHATTER : Ant Group's Malaysian E-Wallet Venture in Talks for $150 Millio..
MT
01/21JACK MA : Jack Ma's reappearance fails to soothe all investor concerns about reg..
RE
01/21China Plans New Laws to Strengthen Anti-Monopoly Supervision of Non-Bank Paym..
MT
01/20MARKET CHATTER : Alibaba-backed Logistics Company Best Mulls Sale Amid Strategic..
MT
01/20Tech Rallies On Earnings Optimism After Netflix Report -- Tech Roundup
DJ
01/20WALL STREET STOCK EXCHANGE : Stocks Hit Records on Upbeat Earnings
DJ
01/20Netflix, Alibaba rise; Bank of New York, US Bancorp fall
AQ
01/20WALL STREET STOCK EXCHANGE : Stocks Climb to Records on Big Earnings Day
DJ
More news
Financials
Sales 2021 699 B 108 B 108 B
Net income 2021 150 B 23 080 M 23 080 M
Net cash 2021 414 B 63 815 M 63 815 M
P/E ratio 2021 31,5x
Yield 2021 -
Capitalization 4 535 B 700 B 700 B
EV / Sales 2021 5,90x
EV / Sales 2022 4,37x
Nbr of Employees 122 399
Free-Float 99,7%
Chart ALIBABA GROUP HOLDING LIMITED
Duration : Period :
Alibaba Group Holding Limited Technical Analysis Chart | BABA | US01609W1027 | MarketScreener
Technical analysis trends ALIBABA GROUP HOLDING LIMITED
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 51
Average target price 2 158,04 CNY
Last Close Price 1 676,12 CNY
Spread / Highest target 49,6%
Spread / Average Target 28,8%
Spread / Lowest Target 4,12%
EPS Revisions
Managers and Directors
NameTitle
Yong Zhang Executive Chairman & Chief Executive Officer
John Michael Evans President & Director
Wei Wu CFO, Director & Head-Strategic Investments
Li Cheng Chief Technology Officer
Chung Hsin Tsai Executive Vice Chairman
Sector and Competitors
1st jan.Capitalization (M$)
ALIBABA GROUP HOLDING LIMITED11.12%699 732
MEITUAN DIANPING29.06%288 637
PINDUODUO INC.-3.25%210 793
SHOPIFY INC.5.72%146 952
MERCADOLIBRE, INC.17.30%97 997
EBAY INC.12.36%38 920