Alibaba released its December quarter earnings on Thursday, topping analysts' expectations.
The Chinese eCommerce giant reported 247.76B yuan ($35.92B) in revenue, up 2% YoY. Net income came in at 46.82B yuan ($6.79B), up 69% YoY. Earnings per American depositary share was 19.26 yuan ($2.79), 14% YoY.
- Alibaba's commerce division reported 169.99B yuan ($24.61B) in revenue, down 1% YoY.
- During the December quarter, China ended its strict COVID-19 policies and reopened the economy.
- The effects of these changes are not likely reflected in these earnings.
- Roughly $600B has been wiped off the market value of Alibaba since its peak in October 2020 due to strict COVID-19 policies and the government's crackdown on the tech sector.
- Analysts expect Alibaba to see increased revenue growth in the coming quarters as the full effect of the end of the COVID-19 policies is felt.
- Alibaba CEO Daniel Zhang expects consumer sentiment and economic activity to recover this year.
