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Alibaba's slowing sales spook investors on edge over Ant

Bloomberg
Bloomberg11/6/2020 11:36 AM GMT+08  • 5 min read
Alibaba's slowing sales spook investors on edge over Ant
Alibaba Group Holding Ltd.’s revenue grew at its slowest pace on record for a September quarter.
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Alibaba Group Holding Ltd.’s revenue grew at its slowest pace on record for a September quarter, underscoring how the e-commerce giant’s post-pandemic rebound is starting to plateau.

Asia’s largest corporation reported a 30% rise in sales in the September quarter, in line with expectations but down a tad from the previous three months. That did little to reassure investors worried about the tightening regulatory scrutiny that forced Jack Ma’s Ant Group Co. to call off its US$35 billion ($47.39 billion) IPO. Chief Executive Officer Daniel Zhang would only say it’s evaluating the impact on its business from more stringent rules governing its 32%-owned sister company.

Alibaba’s shares sank as much as 4.3% in early Hong Kong trading, extending a volatile streak that began with a selloff of more than US$60 billion earlier this week. The company enjoys a close relationship with Ant, whose Alipay mobile wallet anchors the majority of Alibaba’s e-commerce transactions and whose microlending services drive consumption. In response to a question about the extent to which Ant loans lead to online shopping, executives said the company doesn’t quantify that traffic.

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