From Nasdaq.: 2024-05-14 17:07:47

Alibaba Group’s stock dropped 6.7% after disappointing earnings, with revenue hitting $30.7 billion, up 7%. Taobao and Tmall revenue rose 4% to $12.9 billion, while cloud computing revenue increased 3% to $3.5 billion. Despite strong results from Alibaba International Digital Commerce Group, operating income fell 3% to $2.05 billion.

Alibaba faces challenges from Tencent in adjusting to stricter Chinese regulations and economic weaknesses. CEO Eddie Wu remains optimistic, citing double-digit growth in China and international commerce. However, ongoing issues such as a blocked Ant Group IPO, fines, and heightened competition from Pinduoduo have hindered Alibaba’s performance.

Investors are wary after Alibaba’s earnings miss, seeking better reports to restore confidence. The Motley Fool Stock Advisor team recommended 10 stocks for growth, excluding Alibaba. The service, outperforming the S&P 500 since 2002, advises on portfolio building and provides monthly stock picks with potential for significant returns.

Author Jeremy Bowman, who does not hold stock in Alibaba, notes that The Motley Fool recommends Tencent and Alibaba. The author’s opinions do not necessarily reflect those of Nasdaq, Inc.



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