Alibaba Reports Sluggish Revenue Growth
Shares of Alibaba (NYSE: BABA) fell 3.8% following its earnings report for the March quarter, revealing a 2% revenue growth to $30.3 billion, slightly above analysts’ expectations of $30.2 billion. Profitability improved, with adjusted earnings before interest, taxes, and amortization (EBITA) rising 60% to $3.7 billion and adjusted earnings per share up 35% to $1.56, exceeding forecasts of $1.35.
The company is advancing its breakup strategy by approving a full spinoff of its Cloud Intelligence Group, expected to be executed through stock dividend distribution. Additionally, Alibaba is seeking external financing for its international digital commerce operations and is working on initial public offerings for its Cainiao logistics and Freshippo grocery businesses.
