Alibaba Group Holding slashed its outlook for fiscal 2022 revenue after intensifying competition and dwindling consumer spending depressed growth at China’s top e-commerce firm.
The disappointing forecast followed sales that missed analyst estimates for a second straight quarter. Alibaba posted a less-than-expected 29% rise in revenue for the September quarter to 200.7 billion yuan ($42.6 billion; US$31.4 billion). It forecast 20% to 23% growth in fiscal 2022 revenue, short of the 27% that analysts were projecting. Net income plummeted 81% to 5.4 billion yuan, lagging estimates after the internet giant marked down the value of equity investments.
On Thursday, executives fielded a barrage of questions from analysts concerned about the longer-term picture for growth and Alibaba’s efforts to fend off rivals. The lacklustre numbers underscored the former stock market darling’s struggle to revive businesses walloped by macroeconomic and regulatory turmoil. Alibaba’s American Depositary Receipts fell 11% in New York, the most in almost 11 months.