Alibaba has released its Q4 results showing a jump of 37% in revenue for the quarter ended December compared to a year earlier.
“Thanks to the rapid recovery of China’s economy, Alibaba had another very healthy quarter,” said Daniel Zhang, chairman and CEO of Alibaba, in a press release.
Chief Financial Officer Maggie Wu added: “Our domestic core commerce business has fully recovered to pre-COVID-19 levels across the board, while cloud computing revenue grew 59% year-over-year.”
The news of stronger than expected earnings did little to sway investors in light of China’s regulatory crackdown and the shadow cast over co-founder Jack Ma who was snubbed this year by the government when his name was left off the list of top Chinese entrepreneurial leaders published by state media.
Alibaba has also been hampered by problems with its Ant Group’s record initial public offering, which was stopped by regulators who then launched an investigation into the online retailer.
“Ant Group’s business prospects and IPO plans are subject to substantial uncertainties,” Alibaba Chief Executive Officer Daniel Zhang said on a conference call Tuesday. “We will further update the market when the investigation is concluded.”
Back in November when the company reported Q3 results that topped estimates, shares in Alibaba stock still took a slide.
Shares in the massive eCommerce company are down about 17% since a peak in late October, a drop that has seen more than $140 billion wiped from its market capitalization. While Alibaba shares were up in early trading Tuesday following the earnings release, investor confidence in the company still remains tepid.
“It is clear that [Beijing] is going to narrow the scope of managerial independence through regulation and informal ‘guidance’ to the [Alibaba] conglomerate,” said Doug Fuller, an associate professor at the City University of Hong Kong in an interview with CNN.
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