Alibaba (BABA) hopes profits will recover QoQ and YoY.

Alibaba (BABA) is a Chinese multinational e-commerce, retail, internet, AI and technology company. Founded in 1999, it provides customer-to-customer (C2C), business-to-customer (B2C) and business-to-business sales through a web portal as well as electronic payment services and cloud computing services

Alibaba Company currently has a market cap of approximately $189 billion, with ROA and ROE for the 9M23 period equal to 7.5% and 10.3%, respectively. Forecast in 3Q24, revenue is equal to $36,378 million, +4%YoY, +17%QoQ, and profit of 6,646 million. Dollar +11%YoY, +46%QoQ

The reason is that Taobao & Tmall Group revenue increased to $18,592 million +4%YoY, +38%QoQ (recovering in 2 quarters), accounting for 50% of total revenue. Meanwhile, product costs decreased from 67% of revenue in 4Q23 to 61%, pushing the gross profit margin up to 39%, in line with the net profit margin of 18%.

Today, “Alibaba” stocks turned down before the market opened, with BABA stock prices turning down 4.40% to 74.79 dollars after initially rebounding in response to the company’s announcement of increasing the amount of money in the share repurchase program to 25 billion dollars.

Alibaba revealed 3Q24 revenue (as of the end of the period 31/12/2023) equal to 260.35 billion yuan, lower than analysts’ expectations of 262.65 billion yuan, corresponding to a profit of 18.97 yuan/share, lower than analysts’ expectations. at the level of 19.17 yuan/share due to the sluggish Chinese economy. and a slowdown in the retail market.