BABA Q4 Earnings: Consumer spending boost with China re-opening?

- 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

- 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.