From Nasdaq:

Alibaba Group Holding Limited reported third-quarter fiscal 2024 non-GAAP earnings of $2.67 per ADS (RMB 18.97), missing the Zacks Consensus Estimate by 2.2%. Revenues rose 5% from the year-ago quarter to RMB 260.35 billion ($36.7 billion) but missed the Zacks Consensus Estimate of $37.2 billion. The company’s stock has lost 30.8% over the past year.
The increase in revenues was driven by solid momentum across international commerce retail and strength in local services and Cainiao logistics services. But sluggish growth in the China commerce business was a major concern. Alibaba reported a net income of RMB 22.51 billion ($3.2 billion) in the reported quarter, down 36% year over year.
Alibaba’s third-quarter fiscal 2024 revenues by segments saw Taobao and Tmall Group revenues grow 2% from the year-ago quarter to RMB 129.1 billion ($18.2 billion). China commerce retail saw revenues of RMB 123.8 billion ($17.4 billion) grow 1% and China commerce wholesale revenues of RMB 5.31 billion ($747 million) grow 23%.
In other segments, Alibaba International Digital Commerce Group revenues grew 44%, International commerce retail revenues grew 56%, and Cainiao Smart Logistics Network revenues grew 24%. Local Services Group revenues grew 13%, and Cloud Intelligence Group revenues grew 3%.
In terms of operating details, sales and marketing expenses were RMB 33.8 billion ($4.8 billion), up 10.3% from the year-ago quarter. Net income was RMB 22.51 billion ($3.2 billion), down 36% year over year. Operating margin contracted 500 basis points from the year-ago quarter to 9% in the fiscal third quarter.
As of Dec 31, 2023, Alibaba had cash and cash equivalents of $35.9 billion (RMB 254.8 billion), short-term investments totaling $42.3 billion (RMB 300.42 billion), and had generated $9.1 billion (RMB 64.7 billion) in cash from operations in the reported quarter. The company’s free cash flow was $7.96 billion (RMB 56.54 billion).
Alibaba currently carries a Zacks Rank #3 (Hold). Investors interested in the broader retail-wholesale sector can consider better-ranked stocks like Amazon, Fastenal, and Darden Restaurants. Amazon sports a Zacks Rank #1 (Strong Buy), and both Fastenal and Darden Restaurants carry a Zacks Rank #2 (Buy) at present.



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