Alibaba (NYSE:BABA) missed top and bottom line expectations for the June quarter of 2024 as it continues to face headwinds in its core e-commerce business amid rising competition and a cautious Chinese consumer.
Shares of Alibaba gained $2.09, or 2.6%, to $81.56. in the U.S.
Here’s how Alibaba did in the June quarter versus LSEG estimates:
Revenue proved 243.24 billion Chinese yuan ($34.01 billion) versus 249.05 billion yuan expected.. Net income: 24.27 billion yuan versus 26.91 billion yuan expected.
Revenue was up 4% year-on-year, while net income dropped 29% year-on-year. Alibaba said the net income fall was “primarily due to a decrease in income from operations” and “increase in impairment” from its investments.
Alibaba has been looking to reignite growth after a tumultuous 2023, when it carried out its largest-ever corporate structure overhaul. This was followed by high-profile management changes, with Eddie Wu taking over the reins as chief executive in September.
The e-commerce giant has been grappling with a cautious Chinese consumer, along with increased competition from rivals such as JD.com (NASDAQ:JD) and Temu owner PDD (NASDAQ:PDD).
“Bringing together Transact and CBORD and leveraging each business’s unique core competencies will expand and accelerate the innovation they will bring to their customers,” said Hunn.
