China slowdown weighs on revenue growth at internet giant Alibaba

China slowdown weighs on revenue growth at internet giant Alibaba

Troy Powers
February 1, 2019

The company's net profit grew to 33.0 billion yuan ($4.9 billion) in the October-December third quarter, compared to 24.1 billion yuan over the same period in 2017.

This week, Apple reported that its iPhone sales slipped in the holiday shopping quarter for the first time, due to weak demand in the Asian country.

In November last year, Alibaba's Single Day reported sales of Dollars 30.8 Billion in just 24 hours, increasing from USD 25.3 Billion compared to the year before.

Much anticipated regulation of e-commerce in China isn't likely to be very disruptive, and the economy is poised to improve a bit later this year, according to a note from UBS analysts emailed to Retail Dive.

Businesses worldwide are bearing the brunt of slowing growth in China, which has generated a third of global growth in recent years.

Revenue from core commerce increased 40 percent year-on-year to almost 103 billion yuan, while that from cloud computing was up 84 percent year-on-year to 6.6 billion yuan.

"We live in an environment where external factors seem to drive investor sentiment regarding Alibaba's business", said Tsai in a call with analysts following the results on Wednesday.

Boeing's flying car lifts off in race to revolutionize urban travel
It's created to have a range of up to 50 miles (80 kilometers) and is meant to be for short journeys across cities. The advanced airframe integrates propulsion and wing systems for efficient hover and forward flight.

Alibaba's founder Jack Ma has previously described the China-U.S. trade spat as the "most stupid thing in the world".

Alibaba, which is listed in NY, is China's second largest company after Tencent and the world's second largest ecommerce company after Amazon.

Internet giant Alibaba saw its revenue growth slow in the final three months of previous year, in quarterly results likely to stir up concerns over the weaker China market, recently signalled to by United States tech giants.

Growth is expected to ease further this year.

The company also announced that CTO Jeff Zhang has been put in charge of Alibaba Cloud, in addition to his existing duties.

Digital media and entertainment revenue increased by 20% to United States dollars 944 Million and revenue from Innovation initiatives and others rose by 73% to USD 193 Million.

The chief financial officer of Alibaba, Maggie Wu, stated: "In the December quarter, we delivered strong top-line growth of 41 per cent year-over-year".