Alibaba Q2 FY23 Earnings Highlights
[Rewards] BABA achieved stronger than expected earnings, with pandemic-related curbs
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KEY Figures:
● Revenue was $29,124 million and increased 3% YoY, mainly due to soft consumption demand in China commerce segment.
● Non-GAAP net income was $4,754 million, an increase of 19% YoY, which was stronger than estimated and showed Alibaba had increased its focus on driving profitability.
● Net cash provided by operating activities was $6,623 million, an increase of 31% YoY. Free cash flow, a non-GAAP measurement of liquidity, was $5,020 million, an increase of 61% compared to Q2 FY22 because the company held back on capital expenditures.
● For the $25B stock buybacks authorization, $18B was finished and the management just approved an additional $15 billion of buybacks.
●Online physical goods GMV generated on Tmall and Taobao, declined low-single-digit YoY, because of the softness in China, COVID-19 restrictions as well as ongoing competition.
More statistics:
*SBC: Stock-based compensation
KEY Points:
● For China Commerce, Taobao and Tmall continue to identify opportunities and have achieved high consumer retention. For the twelve months that ended September quarter, the number of consumers who each spent over RMB10,000 remained around 124 million with a retention rate of 98%.
● For International Commerce, the combined order quantity, including Lazada and AliExpress declined by 3% YoY. During the September quarter, increasing logistics costs and foreign currency volatility created headwinds for cross-border e-commerce demand.
● The Cloud segment revenue grew 4% YoY to $2.91 billion, mainly driven by growth in the public cloud and partly offset by a fall in hybrid cloud revenue.
● The company continued to take a holistic approach to improve operating efficiency and cost optimization. When combined with easing COVID restrictions in China, Alibaba may have tailwinds helping its net income and revenue.
● Alibaba did not disclose sales numbers for its 2022 Singles Day shopping festival, merely stating that results were flat with last year.
The KEY in your hands:
According to Morningstar, by November 15 2022, BABA's share had dropped approximately 31% since the start of 2022, underperforming the S&P 500 (.SPX), which is about a 17% decline in the same period.
Therefore, how do you see Alibaba currently? What's your opinion or analysis about it? Speak out with mooers and get inspired by sharing!
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Comments above are made available for informational purposes only. Before investing, please consult a licensed professional. *Source of data: https://www.sec.gov/Archives/edgar/data/1577552/000110465922119884/tm2230824d3_6k.htm Moomoo Inc. ("moomoo") provides mobile and online technology solutions for securities trading. Moomoo is not an investment adviser or a broker-dealer and it provides neither investment or financial advice nor securities trading services. All contents such as comments and links posted or shared by users of the community are opinions of the respective authors only and do not reflect the opinions, views, or positions of moomoo, its affiliates, or any employees of moomoo or its affiliates. Please consult a qualified investment or tax advisor for your personal financial planning and tax situations. Moomoo is a financial information and trading app offered by Moomoo Technologies Inc. In the U.S., investment products and services available through the moomoo app are offered by Moomoo Financial Inc., a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of Financial Industry Regulatory Authority (FINRA)/Securities Investor Protection Corporation (SIPC). In Singapore, investment products and services available through the moomoo app are offered through Moomoo Financial Singapore Pte. Ltd. regulated by the Monetary Authority of Singapore (MAS).Moomoo Financial Singapore Pte. Ltd. is a Capital Markets Services License (License No. CMS101000) holder with the Exempt Financial Adviser Status. This advertisement has not been reviewed by the Monetary Authority of Singapore. In Australia, financial products and services available through the moomoo app are provided by Futu Securities (Australia) Ltd, an Australian Financial Services Licensee (AFSL No. 224663) regulated by the Australian Securities and Investment Commission (ASIC). Please read and understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other disclosure documents which are available on our websites https://www.moomoo.com/au. Moomoo Technologies Inc., Moomoo Financial Inc., Moomoo Financial Singapore Pte. Ltd. and Futu Securities (Australia) Ltd are affiliated companies.
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Milk The Cow : Net loss for sep-quarter seem not that good...
.
)
However, I won't put much expectation into it as the risk is still high due to the China-Taiwan tension.
However $Alibaba (BABA.US)$ launched shares buyback, so... the price will increase for awhile
(U decided for urself if u wanna stay or not
The rumours about China opening their economy back up, can be an opportunity speculation...
sociable Dingo_8604 : Many investors are negative towards China Tech now, however, it seems $Alibaba (BABA.US)$ has much room to grow given its popularity. Currently it experiencing short term gains, so people will certainly be selling to earn some profits which happens to all stocks anyway. When the price comes down, it is worth to add some into my portfolio imo.
Deep Value : I prefer Tencent
101518828 : This stock is a goner lol
Srikanth Reddy : Let's Add!
romancer : Where's Jack?
Mooon : Baba quite beaten down. Quite a lot of fear surrounding the stock. However, the P/S is low (< 2). Usually tech stocks has higher P/S e.g Apple P/S around 6. No doubt the P/E is till high at 90+, But if baba can try to optimise iits margins, might still have chance for upside.
Zurich Axioms : I will sell if I am still holding to baba shares but will consider to buy for trading purpose if it dip below USD60.00
旧人不覆 Deep Value: I prefer Tencent
12moon : I will not hold BABA in my portfolio. Thus stock has disappointed and is losing favours with investors. If you are trader, I wish you good luck. For me, I prefer Tencent as a better choice for investing.
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