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Alibaba’s fourth-quarter earnings per share exceeded analysts’ expectations, even as earnings missed estimates, as the Chinese e-commerce giant said on Tuesday it would increase its share buyback program by 10 billion dollars to 15 billion dollars.
The trading results did not attract investors, as the stock fell 0.8% before trading in the United States, after Alibaba shares listed in Hong Kong rose 0.83% before trading. publication of results.
Like its U.S. counterpart Amazon, the profits of the Chinese e-commerce giant show revenue growth starting to slow – from 64% year-on-year in the first three months of 2021 to 34% in the last quarter, according to Barron. , “Al Arabiya.net”.
Alibaba generated 205.7 billion yuan ($ 31.8 billion) in revenue in the three months ending in late June, which the company said was the first fiscal quarter of 2021. Revenue figures were lower analysts’ estimates, which were closer to 251 billion yuan. . The FactSet Consensus.
The result is better, with adjusted EBITDA of 48.6 billion yuan, down 5% year-on-year but above the 46.7 billion yuan expected by Wall Street analysts.
“For the June quarter, the number of annual active consumers in Alibaba’s ecosystem was 1.18 billion, an increase of 45 million from the March quarter, including 912 million consumers in China,” said said Daniel Zhang, CEO of Alibaba.
“We believe in growing the Chinese economy and creating long-term value for Alibaba,” Zhang added. “We will continue to strengthen our technological advantage by improving the customer experience and helping our customers succeed in their digital transformations. “
Alibaba also announced that it will increase the size of its share buyback program by 50%, to become the largest in the company’s history, from $ 10 billion to $ 15 billion.
The company’s profits come at a difficult time for China’s tech giants. The industry has been hit by a regulatory crackdown that has intensified in recent weeks, causing the largest monthly decline in Chinese tech companies listed in the United States since the 2008-2009 financial crisis.
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