ALIBABA - Locked Down But For how Long?
Alibaba Group Holding Limited is expected to report earnings on 05/26/2022 before market open. Analysts are expecting Alibaba to report adjusted income of $1.07 per share, down 33% comparing with the year-ago period $1.6per share, on revenue of $29.7 billion, up 3% for its fiscal fourth quarter.
Alibaba is more than 72% off its record high set in October 2020. Alibaba has been facing corporate governance and regulatory pressure. Other than that economic weakness, Covid shutdowns, supply-chain issues and inflation also put pressures on the share price.
However, there is some optimism that China will normalize the operating environment for Internet companies. Chinese Vice Premier Liu He said that Beijing will roll out more measures to boost the economy as well as favorable policy steps for capital markets.
As a sign of confidence, Alibaba announced in March that it would increase its buyback program to $25 billion from $15 billion, the largest ever repurchase plan by the e-commerce giant.
Overall, despite Alibaba’s issues, the Street keeps a bullish outlook
Alibaba is more than 72% off its record high set in October 2020. Alibaba has been facing corporate governance and regulatory pressure. Other than that economic weakness, Covid shutdowns, supply-chain issues and inflation also put pressures on the share price.
However, there is some optimism that China will normalize the operating environment for Internet companies. Chinese Vice Premier Liu He said that Beijing will roll out more measures to boost the economy as well as favorable policy steps for capital markets.
As a sign of confidence, Alibaba announced in March that it would increase its buyback program to $25 billion from $15 billion, the largest ever repurchase plan by the e-commerce giant.
Overall, despite Alibaba’s issues, the Street keeps a bullish outlook
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