China internet giant Alibaba early Thursday reported September-quarter results that beat on earnings but showed another quarter of weak revenue performance. Still, BABA stock jumped.
The e-commerce firm reported adjusted earnings of $1.82 per U.S. share on revenue of $29.12 billion. Analysts expected Alibaba to report earnings of $1.70 a share on revenue of $29.6 billion. Results were for its fiscal second quarter ended Sept. 30. On a year-over-year basis, Alibaba's earnings rose 15% while sales increased 3%. In the prior quarter revenue fell 4%.
For years, Alibaba consistently reported double-digit revenue growth as one of China's fastest-growing internet companies. But stringent Covid-19 lockdowns amid burdensome government regulations and a worsening global economy have hamstrung its business. In addition, Alibaba has been hurt by supply chain problems and increasing logistics costs.
BABA Stock Action
BABA stock jumped 7.8%, closing at 84.26 on the stock market today.
"The uncertainties of the global landscape have only reinforced our resolve to focus on building capacity that will yield sustainable, high-quality growth for our customers and our own business over the long term," Alibaba Chief Executive Daniel Zhang said in a statement with the Alibaba earnings release.
In the past year, BABA stock is down 35%.
Other China tech companies reporting this week include Tencent Holdings on Tuesday and JD.com on Friday. Tencent reported third-quarter earnings that topped estimates but sales were a tad light.
Earlier this week, BABA stock and shares of other China internet companies such as JD.com, Tencent and Baidu got a boost following reports that President Joe Biden and Chinese leader Xi Jinping held constructive talks on business and political matters at the G20 summit in Bali.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
