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The Chinese e-commerce giant Ali Baba (BABA) on Tuesday reported mixed results for its June quarter. BABA stock fell on the news.
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The company reported adjusted earnings of $ 2.57 per share on revenue of $ 31.87 billion. Analysts expected Alibaba to report a profit of $ 2.22 on revenue of $ 32.4 billion, according to FactSet. The turnover increased by 34% compared to the previous year.
Alibaba stock fell 1.4%, closing at 197.38 on the stock exchange today. BABA stock hit a 16-month low last week. But Alibaba has increased its share buyback program to $ 15 billion, from $ 10 billion.
Alibaba said it had 1.18 billion annual active customers in the 12 months ended June 30, up 45 million from the previous quarter. It reported 939 million active mobile users, up from 14 million.
Chinese regulators hit gambling stocks
Among other Chinese stocks, Tencent Holdings (TCEHY) and NetEase (NTES) fell on Tuesday after Chinese state media called online gambling “opium.” Tencent lost 7.3% to 56.38. NetEase dipped 11.4% to 93.06. The report called for further restrictions on the industry, according to a CNBC report.
Many Chinese tech stocks have been hammered as regulators tighten their grip on what companies can and cannot do. In April, Chinese regulators fined Alibaba $ 2.8 billion after an antimonopoly investigation. Sectors targeted by regulators include e-commerce, ridesharing, and education technology.
BABA stock is down 19% year-to-date. However, the company was able to stay in growth mode despite a slowdown in its core e-commerce business. For a mega-cap action, Ali Baba continues to show impressive growth.
“Alibaba reported a decent quarter all things considered, although questions will remain regarding higher levels of capital spending, the pace of growth of new initiatives and the impact of government regulations,” Baird analyst wrote. Colin Sebastion in a note to clients.
Please follow Brian Deagon on Twitter at @IBD_BDeagon to learn more about tech stocks, analysis and financial markets.
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