What's Going On With Alibaba Stock Thursday?
Portfolio Pulse from Anusuya Lahiri
Alibaba Group Holding Limited (NYSE: BABA) reported Q2 FY23 revenue of $30.81 billion, surpassing estimates of $30.77 billion, with adjusted earnings per ADS at $2.14, beating the consensus of $2.11. Revenue growth was seen across multiple segments, with Alibaba International Digital Commerce Group showing a 53% increase. However, Alibaba's Cloud Intelligence Group faces uncertainties due to new U.S. semiconductor embargoes. Alibaba has paused the Freshippo IPO and is preparing for external fundraising for its International Digital Commerce Group. Cainiao is applying for an IPO in Hong Kong. Jack Ma's family trust plans to sell 10 million ADSs worth approximately $871 million. Alibaba announced a FY23 dividend of $1.00/ADS. BABA shares dropped 7.94% in premarket trading.
November 16, 2023 | 12:58 pm
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Alibaba reported higher than expected Q2 revenue and earnings per ADS, with significant growth in several segments. However, the stock traded lower due to concerns over the U.S. semiconductor embargo, paused Freshippo IPO, and news of Jack Ma's trust selling shares.
Despite positive earnings, the short-term impact on BABA's stock is likely negative due to the semiconductor embargo, which could affect its Cloud Intelligence Group, and the market's reaction to the potential sale of shares by Jack Ma's trust. The premarket drop indicates investor concern.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100