What Alibaba’s Earnings Report Says About the Health of The Chinese Market

What Alibaba’s Earnings Report Says About the Health of The Chinese Market

With 41% year-over-year revenue growth, it's the slowest pace for the Chinese e-commerce giant since the third quarter of fiscal 2016.

Alibaba's cloud business exited the fourth quarter nearing a $4 billion annual revenue run rate.

The 41pc growth announced on Wednesday was the weakest Alibaba had recorded in three years.

On the economy, Tsai noted that consumer consumption in China remains robust as the middle class there is set to grow to 850 million people by 2030.

Alibaba beat on earnings, but missed on sales.

The positive result by Alibaba which is the first of China's internet giants to report its earnings may bring a much-needed boost to China's slowing economy.

"We live in an environment where external factors seem to drive investor sentiment regarding Alibaba's business", Tsai said in a call with analysts following the results on Wednesday.

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Alibaba Group Vice Chairman and Co-founder Joe Tsai, in remarks made to analysts Wednesday morning and emailed to Retail Dive, pushed back against the idea that any of that would cause much of a ripple for the company's fortunes - echoing comments by Alibaba Group President J. Michael Evans during a panel at the National Retail Federation's Big Show in NY earlier this month.

China's economic growth in 2018 slowed to its weakest in almost three decades amid faltering domestic demand and bruising US tariffs.

Chinese consumers are spending strongly despite an economic slowdown, the chief executive of Alibaba said yesterday.

Businesses worldwide are bearing the brunt of slowing growth in China growth, which has generated a third of global growth in recent years. Apple this weak said its iPhone sales slipped in the holiday shopping quarter for the first time due to weak demand in the Asian country.

Cloud computing is a bright spot for Alibaba. Core Commerce revenue increased by 40% year-over-year to Dollars 14.95 Billion, while Cloud Computing revenue rose by 84% to USD 962 Million.

Given signs of saturation in China's urban market, Alibaba has been trying to grow outside of its core e-commerce business to win new customers.

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