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Key Takeaways
- Alibaba’s June-quarter results missed expectations for revenue and profit.
- Revenue from the Chinese e-commerce retailer’s cloud division rose 6% year-over-year and artificial intelligence (AI)-related product revenue was reported to grow at a “triple-digit” pace.
- The Chinese company’s U.S.-traded shares edged lower Thursday afternoon after a steep decline in premarket trading.
Alibaba Group Holding’s (BABA) U.S.-traded shares shook off premarket struggles Thursday following quarterly results that missed expectations.
The Chinese e-commerce giant posted revenue for its June quarter of 243.24 billion yuan ($33.91 billion), up 4% year-over-year, and net income attributable to shareholders of 24.27 billion yuan, a decrease of 29%. Both figures fell short of consensus analysts’ expectations compiled by Visible Alpha.
Cloud Segment, AI-Related Product Revenue Rise
The company’s cloud division posted 6% higher revenue at 26.55 billion yuan, and Alibaba said that “AI-related product revenue continued to grow at triple-digits year-over-year,” although a figure for that segment wasn’t disclosed. Its e-commerce division, which includes the Taobao and Tmall Chinese online shopping platforms, posted a 1% revenue decline to 113.37 billion yuan.
Alibaba American depositary receipts (ADRs) traded down slightly as of 2 p.m. ET Thursday at $79.18 after initially dropping roughly 5% before the opening bell in the U.S.