Alibaba Group Holding (BABA) missed market expectations for first-quarter revenue on Thursday, as the company’s domestic e-commerce sales were pressured by cautious spending by Chinese consumers amid an ailing economy.
The company’s U.S.-listed shares fell about 4% in pre-market trading.
China’s stagnant post-COVID recovery, combined with persistently weak housing markets and high levels of uncertainty about employment, have undermined consumer confidence and purchasing power in the world’s second-largest economy, impacting global businesses across the board.
Alibaba also faces stiff competition from rivals such as JD.com and discount-focused retail platforms such as PDD Holdings’ Pinduoduo and ByteDance-owned Douyin.
Alibaba reported revenue of 243.24 billion yuan ($33.98 billion) for the quarter ended June 30, compared with analysts’ average estimate of 249.05 billion yuan, according to data from LSEG.
Net profit attributable to ordinary shareholders was 24.27 billion yuan in the quarter, compared with 34.33 billion yuan a year earlier.
($1 = 7.1584 Chinese Yuan Renminbi)
(Reporting by Deborah Sophia in Bengaluru and Casey Hall in Shanghai; Editing by Sriraj Kalluvila)
