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.
Alibaba reports first-ever quarterly operating loss in 7 years. Here s why
Alibaba reports first-ever quarterly operating loss in 7 years. Here s why
Alibaba s 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.
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Alibaba s overall revenue rose to 187.4 billion yuan in the fourth quarter. (Photo: Reuters)
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 per cent in choppy trading, even as the company forecast strong 2022 revenue, betting that the pandemic-driven shift to online shopping will remain resilient.
Alibaba Group Holding Ltd – ADR (NYSE:BABA) shares are trading higher by 1.85% at $209.90 in Friday s pre-market session after Citigroup analyst Alicia Yap maintains Alibaba with a Buy and lowers the price target from $338 to $306.
Keybanc analyst Hans Chung also maintains Alibaba with an Overweight and lowers the price target from $305 to $275.
Alibaba operates China s most-visited online marketplaces- the consumer-to-consumer driven Taobao and business-to-consumer focused Tmall. Alibaba s China marketplaces account for about 68% of total revenues. Taobao generates revenue through advertising and other merchant data services and Tmall derived revenue from commission fees.
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By Stephanie Yang and Jing Yang Alibaba Group Holding Ltd. posted its first-ever quarterly loss since it went public after being hit by a record antitrust fine in China and pledged to invest future profits into improving its business and warding off competition. Over the past year, the Chinese e-commerce giant has been under pressure from both encroaching competitors and an antitrust investigation, which ruled that Alibaba had abused its dominant market position. In a Thursday earnings call, Chief Executive Daniel Zhang said the company would focus on bettering its platform following the fine. We have gone through all kinds of challenges including the Covid-19 pandemic, fierce competition as well as the antimonopoly investigation and the penalty decision by Chinese regulators, Mr. Zhang said. We believe the best way to overcome these challenges is to look forward and invest for the long-term.
HK->Shanghai Connect daily quota used 6.6%, Shanghai->HK daily quota used 3% FTSE China A50 +1.8%
SHANGHAI, May 14 (Reuters) - China stocks climbed on Friday as financial and healthcare firms gained, leading a rally in Asian markets as U.S. Fed officials allayed inflation fears. The CSI300 index rose 1.7% to 5,079.30 points at the end of the morning session, while the Shanghai Composite Index advanced 1.2% to 3,471.17 points. Leading the pack, the CSI300 financials index and the CSI300 healthcare index rallied 2% and 2.8%, respectively. Asian shares gained on Friday, as U.S. Fed officials calmed inflation fears. “Investors hunt for bargains as the blue-chip CSI300 index approaches a key support level since mid-March, while gains in overseas markets also provide some solace,” said Zheng Zichun, an analyst with AVIC Securities.