BABA Stock Price: Alibaba tumbles on missed earnings and tempered guidance
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CLAIM OFFER- NYSE:BABA fell by 11.13% during Thursday’s trading session.
- AliBaba missed on its quarterly earnings, in one of the most difficult quarters to date.
- AliBaba’s rival JD.Com tops earnings estimates and sidesteps regulatory pitfalls.
NYSE:BABA was not expected to do well this quarter, but the dropoff was swift and steep for the Chinese eCommerce giant. Shares of BABA fell by 11.13% on Thursday, and closed the trading session at $143.60. It was a bearish day for most Chinese ADRs as the Hang Seng Index in Hong Kong fell with the news of AliBaba’s earnings miss. Other ADRs including Nio (NYSE:NIO) XPeng (NYSE:XPEV), Li Auto (NASDAQ:LI), and PinDuoDuo (NASDAQ:PDD) were all trading well into negative territory. The Hang Seng index itself tumbled by 1.3% during the session earlier in the day.
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It was indeed the news of the day as AliBaba reported disappointing earnings amidst ongoing regulatory crackdowns from the Chinese government. AliBaba fell early during Asian trading hours, and its ADR plummeted on the New York Stock Exchange. The company saw 29% year over year revenue growth, which missed analyst expectations, and also slashed guidance for the rest of the year by up to 10%. AliBaba was expected to be one of the companies hit hardest by the regulatory crackdown, after it was forced to pay a landmark antitrust fine worth $2.8 billion USD earlier this year.
BABA stock forecast
In other earnings news, one of AliBaba’s biggest rivals JD.Com (NASDAQ:JD) also held its call before the markets opened. JD.Com managed to sidestep a majority of the impacts from the crackdown, and topped Wall Street estimates on both the top and bottom line, while managing to grow its annual active user base by nearly 30% year over year. Shares of JD.Com were up almost 6.0% during American trading hours on Thursday.
- NYSE:BABA fell by 11.13% during Thursday’s trading session.
- AliBaba missed on its quarterly earnings, in one of the most difficult quarters to date.
- AliBaba’s rival JD.Com tops earnings estimates and sidesteps regulatory pitfalls.
NYSE:BABA was not expected to do well this quarter, but the dropoff was swift and steep for the Chinese eCommerce giant. Shares of BABA fell by 11.13% on Thursday, and closed the trading session at $143.60. It was a bearish day for most Chinese ADRs as the Hang Seng Index in Hong Kong fell with the news of AliBaba’s earnings miss. Other ADRs including Nio (NYSE:NIO) XPeng (NYSE:XPEV), Li Auto (NASDAQ:LI), and PinDuoDuo (NASDAQ:PDD) were all trading well into negative territory. The Hang Seng index itself tumbled by 1.3% during the session earlier in the day.
Stay up to speed with hot stocks' news!
It was indeed the news of the day as AliBaba reported disappointing earnings amidst ongoing regulatory crackdowns from the Chinese government. AliBaba fell early during Asian trading hours, and its ADR plummeted on the New York Stock Exchange. The company saw 29% year over year revenue growth, which missed analyst expectations, and also slashed guidance for the rest of the year by up to 10%. AliBaba was expected to be one of the companies hit hardest by the regulatory crackdown, after it was forced to pay a landmark antitrust fine worth $2.8 billion USD earlier this year.
BABA stock forecast
In other earnings news, one of AliBaba’s biggest rivals JD.Com (NASDAQ:JD) also held its call before the markets opened. JD.Com managed to sidestep a majority of the impacts from the crackdown, and topped Wall Street estimates on both the top and bottom line, while managing to grow its annual active user base by nearly 30% year over year. Shares of JD.Com were up almost 6.0% during American trading hours on Thursday.
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