- Revenue +2% - Income from operations -9% - Diluted EPS +35%
Good: Consumer spending (Direct sales) gaining momentum since China eased draconian "zero-COVID" policy restrictions - Increase in order volume for International Commerce Retail segment (Lazada, AliExpress, Trendyol and Daraz) - Growth in Youku's subscription revenue
Bad: - Regulatory crackdown on China tech sector - Difficulty attracting new users with new competitors like PDD Holdings and Douyin - Soft corporate demand and excess capacity for cloud services
Conclusion:
- Decent earnings driven by China's re-opening after Covid.
- Potential catalysts include Tongyi Qianwen, a generative artificial intelligence (AI) model, which the company is testing.
- Governmental regulations remain a key risk.
- Impact of cloud unit spin-off remains to be seen.
If you can accept the regulatory risks, Chinese stocks like Alibaba present good value.
If not, no harm looking elsewhere.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Following the introduction of China's groundbreaking DeepSeek technology, Wall Street giants have revised their investment outlooks for the Chinese market.
Fundamentalist : Doesn’t look too good