Alibaba posted flat revenue growth for the first time

Chinese technology and e-commerce stocks jumped more than 6 percent in early market trading in New York on Thursday. The stock in Hong Kong closed up 5.2 percent earlier.

The pop came even as the company reported revenue of nearly 205.6 billion yuan (about $30.4 billion) in June, compared with the same period last year.

But that topped analysts’ forecasts and net income also beat expectations, at 22.7 billion yuan ($3.4 billion).

Ali Baba (BABA)China, which hosts the most popular online shopping platforms Taobao and Tmal, has not been immune to the economic pain of the Covid-19 lockdowns across China earlier this year.

The company said its retail sales fell in April and May, especially as Shanghai and other major Chinese cities battled outbreaks that have dampened consumer demand and created logistical nightmares.

But business has rebounded since June, especially as “the logistics and supply chain situation gradually improved after the easing of Covid restrictions,” CEO Daniel Zhang said.

Alibaba stock slipped in Hong Kong after the US shrugged off concerns.
In a conference call Thursday, Zhang said the company has seen flashes of recovery in categories such as fashion and electronics, which have previously been hit hard.

Although growth has stagnated, Zhang said the company wanted to overcome “smooth economic conditions” to “provide stable earnings” and make a positive difference in its bottom line.

However, he warned of a rocky road ahead, pointing to wider economic risks.

“External uncertainties, including but not limited to global geopolitical dynamics, the resurgence of Covid and China’s macroeconomic policies and social trends, are beyond our control as a company,” Zhang told analysts.

“All we can do now is focus on improving ourselves,” he said, adding that Alibaba was focused on cutting losses in businesses such as its supermarket and catering divisions.

But Alibaba has faced big questions lately, especially after it was added to a key U.S. Securities and Exchange Commission watch list last Friday. As with other Chinese companies, the move puts the tech titan at risk of being kicked off Wall Street if US auditors fail to fully examine its financial statements.
Alibaba shares jumped after announcing the initial listing in Hong Kong

Alibaba in 2010 Since its massive IPO in 2014, its shares have had a primary listing in New York.

Now, it looks like he’s widening his bets. Last week, the company announced plans to upgrade its secondary listing in Hong Kong to a primary listing. The change could take place by the end of this year, and would allow more Chinese investors to get into the stock.

This is as one of Alibaba’s long-time supporters appears to be pulling back.

Financial Times reported on Thursday SoftBank (S.F.B.F) It was “more than half sold” in the Chinese company, citing advance sales records seen by the newspaper.

SoftBank did not immediately respond to a request for comment.

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