Alibaba reports first-ever operating loss in 7 years due to anti-monopoly fine
The fine on Alibaba led to a 7.66-billion yuan ($1.19 billion) operating loss in the fourth quarter ended March 31
Reuters | May 14, 2021 | Updated 09:15 IST
China's top e-commerce platform Alibaba Group Holding Ltd on May 13 posted its first quarterly operating loss since going public in 2014 due to a record anti-monopoly fine by the country's market regulator. Its US-listed shares fell nearly 3 percent in choppy trading, even as the company forecast strong 2022 revenue, betting that the pandemic-driven shift to online shopping will remain resilient.
The outlook, however, was overshadowed by a regulatory crackdown in China that led to the suspension of a $37-billion IPO of its affiliate Ant Group and a $2.8-billion fine in April for anti-competitive business practices. The fine led to a 7.66-billion yuan ($1.19 billion) operating loss in the fourth quarter ended March 31.