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Shares of Alibaba surge as the company’s revenue exceeds forecasts.

Alibaba has just reported revenue growth that was flat for the first time since the company went public, but investors don’t seem to be concerned about this development. Thursday morning’s premarket trading in New York saw a rise in the price of shares of a Chinese tech and e-commerce giant that was greater than 6 percent. Earlier, when trading in Hong Kong came to a close, its stock had gained 5.2 percent.

Company reported revenue

The increase occurred despite the fact that the company reported revenue of nearly 205.6 billion yuan (about $30.4 billion) in the quarter that ended in June. This figure is roughly comparable to what it recorded during the same time period the previous year.

However, this was higher than what was predicted by industry analysts, and the company’s net income came in at $3.4 billion, which is equivalent to 22.7 billion yuan. Alibaba (BABA), the owner of the immensely popular Taobao and Tmall online shopping platforms, was not immune to the economic pain that was caused by the COVID-19 lockdowns earlier this year across China.

 Retail sales

According to the company, its retail sales took a nosedive in April and May, particularly as Shanghai and other major Chinese cities dealt with crippling pandemic restrictions that scuttled consumer demand and created logistical nightmares. In particular, this was due to the fact that pandemic restrictions in Shanghai and other major Chinese cities had

Conference call

On Thursday, during a conference call, Zhang stated that the company had seen some signs of recovery in areas such as the fashion industry and the electronics industry, both of which had been severely impacted earlier on. Zhang attempted to put a positive spin on the most recent results by pointing out that the company had overcome “soft economic conditions” to “deliver stable revenues,” despite the fact that growth had virtually come to a complete halt.

However, he cautioned that the road ahead would be difficult and pointed to wider economic risks.

Analysts Reports

Analysts were told by Zhang that the company had no control over “the external uncertainties,” which included but were not limited to international geopolitical dynamics, the resurgence of COVID, and China’s macroeconomic policies and social trends.

“The only thing we can do at this moment is to focus on improving ourselves,” he said, adding that Alibaba had focused on narrowing losses across businesses such as its supermarkets and food delivery units. “The only thing we can do at this moment is to focus on improving ourselves,” he said.

United States Securities and Exchange Commission

But more significant concerns have been raised in recent times, particularly in light of the fact that Alibaba was added to a significant watchlist maintained by the United States Securities and Exchange Commission last Friday. If US auditors are unable to thoroughly inspect the company’s financial statements, the tech titan runs the risk of being expelled from Wall Street as a result of this move.

Stock price increased

The stock price increased following the announcement of Alibaba’s primary listing in Hong Kong. New York has been Alibaba’s primary listing for many years, and the city is also the place where the company’s shares have been traded ever since its massive initial public offering in 2014.

At this point, it looks like they are hedging their bets. The company made the announcement about a week ago that it intends to raise its secondary listing in Hong Kong to the level of a primary listing. The modification might take place before the end of this year, and if it does, it will make it possible for more mainland Chinese investors to purchase the stock. This comes at a time when one of Alibaba’s most significant and long-term backers is seen to be pulling back on their support.

Financial Times Report

According to a report published by the Financial Times on Thursday, SoftBank (SFTBF) had “sold more than half” of its holdings in the Chinese company. The report said that the newspaper had seen filings for forward sales that were related to the deal. A request for comment was made to SoftBank, but they did not respond right away.

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