Has Alibaba lost its edge? 🤔🤔
Alibaba's stock price has suffered significantly in recent years, resulting in a painful 50% loss for shareholders who have held the stock for the past five years. $Alibaba (BABA.US)$
![Has Alibaba lost its edge? 🤔🤔](https://sgsnsimg.moomoo.com/feed_image/102877683/16e9f775155435c6ba67a925642ccb0b.jpg/bigmoo)
Additionally, investors were shocked by the recent earnings report, which showed a net loss of $22 billion RMB for the three-month period ending September 30th, 2022. These losses have led many to question whether Alibaba has lost its competitive edge. 😖😖
![Has Alibaba lost its edge? 🤔🤔](https://sgsnsimg.moomoo.com/feed_image/102877683/1531915132153fd7a4237a57b7b12e78.jpg/bigmoo)
However, upon closer inspection, Alibaba remains a highly profitable company. Its total revenue has grown by 3% year-over-year, reaching $207 billion RMB. Most aspects of the business have seen consistent growth, with the exception of China Commerce, which experienced a 1% drop in revenue.
![Has Alibaba lost its edge? 🤔🤔](https://sgsnsimg.moomoo.com/feed_image/102877683/c49a658e1b5c39dba972a93490169633.jpg/bigmoo)
This could be primarily attributed to China's 0-Covid policy, which has severely impacted logistics and the supply chain.
Alibaba attributed the shift from profit to loss to "an increase in net losses resulting from the decline in market prices of equity investments in publicly-traded companies and a reduction in the share of equity method investees' results." The substantial drop in valuation was mainly linked to its controversial financial unit, Ant Financial. 🐜
If you disregard the investment losses, and look at Alibaba's preferred non-GAAP reporting method, the company would have achieved a 19% year-on-year growth in net profit, totaling $33.8 billion RMB or $4.75 billion. 🤗
Apart from the e-commerce business, there’s one more strong growth potential for #baba . Give me a ❤️if you wanna know! #babastock #investing #stockstobuy #alibaba
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Bernice1 :![](https://emoticon.futunn.com/rich_big_face3_mm/25.png)