Alibaba shares down as Q1 revenue comes short

Alibaba’s (BABA) US-listed shares slipped in premarket trading Thursday after the Chinese tech giant missed analysts' expectations for Q1 revenue.

The company’s Q2 earnings per share (EPS) of RMB16.44, topping consensus estimates of RMB15.00. However, Alibaba’s revenue for the quarter came in at RMB243.24 billion, slightly below the consensus estimate of RMB248.38 billion.

The Taobao and Tmall Group reported revenue of RMB113.37 billion, a 22% increase quarter-over-quarter, but also below the estimated RMB117.58 billion.

Alibaba (NYSE:BABA )'s International Digital Commerce Group posted revenue of RMB29.29 billion, up 6.7% quarter-over-quarter, compared to the expected RMB29.56 billion.

The Cloud Intelligence Group reported revenue of RMB26.55 billion, a 3.7% increase quarter-over-quarter, slightly above the expected RMB26.27 billion.

Adjusted EBITDA came in at RMB51.16 billion, a 1.7% decrease year-over-year, yet above the estimated RMB47.52 billion.

“Our results this quarter demonstrated our strategy at work. Our focus on enhancing user experience by offering quality products at attractive prices with great service led to stabilizing market share of Taobao and Tmall Group as we returned the business on the growth trajectory,” said Eddie Wu, Chief Executive Officer of Alibaba Group.

“The cloud business achieved positive revenue growth momentum, driven by public cloud and AI-related product adoption as we continue to invest to maintain our market leadership,”

Source: Investing.com