Alibaba, the Chinese e-commerce giant, exceeded expectations in its Q4 earnings report, leading to a 4% increase in pre-market trading. Despite the impact of COVID-19 measures on supply chains and logistics, Alibaba’s (NYE:BABA) revenue increased by 2.1% to CNY 247.76 billion, surpassing expectations of CNY 245.87B. The adjusted earnings per American depositary receipt was CNY 19.26, beating analysts’ consensus of CNY 16.63. While cloud sales grew by 3.3% to CNY 20.18B, the adjusted EBITDA margin increased by 300 basis points to 24% from the previous year. Alibaba also reported a decrease of over 4,000 employees at the end of the December quarter compared to FQ3 due to cost optimization. The company spent $3.3B on stock buybacks during the quarter. Despite a slight shortfall in local consumer services and cloud computing, analysts have deemed Alibaba’s results as “solid.” Chairman and CEO Daniel Zhang expressed optimism about continued recovery in consumer sentiment and economic activity.
Alibaba Group Stock Analysis:
According to 12 analysts, the average target price for Alibaba Group stock over the next 12 months is $134.18, with an average rating of Strong Buy. Stock Target Advisor’s analysis of the company is Slightly Bullish, based on 6 positive signals and 5 negative signals. Alibaba’s stock price closed at $94.78, representing a -8.30% change over the past week, -25.08% change over the past month, and -13.62% change over the last year.
Company Overview
Alibaba Group Holding Limited is a technology infrastructure company that operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others. It provides merchants, retailers, and businesses with the technology and marketing reach to engage with their customers in China and internationally. Alibaba offers a range of platforms and services, including e-commerce marketplaces, logistics services, payment services, online travel platforms, and digital media and entertainment services. The company also provides cloud computing, IoT, and big data services. Alibaba was founded in 1999 and is headquartered in Hangzhou, China.
