The Alibaba stock price recorded a fall of more than 6% in U.S after the company faced their first loss as a public company. Things were not looking good in Hong Kong either as the shares tumbled by more than 5%. Its market capitalization was down by $588 million.
Alibaba incurred a net loss of 5.47 billion yuan earlier in March this year. This was after the company face an anti-monopoly fine of $2.8 billion which heavily weighed on their earnings. The company had expected a net profit of 6.95%.
The company recorded a net income of RMB 3.2 million which was a 6.28% loss. The company had a total of 811 million active customers which was a 32 million increase from the previous year.
Alibaba stock price took a nosedive in both China and US as investors closely watched their earnings. The annual firm revenue rose to RMB 187.4 billion which is a 64% rise. Its cloud revenue rose to RMB 16.8 billion as its core commerce business generated more than RMB 161.4 billion.
Despite being faced by a huge fine that caused a huge blow in Alibaba stock prices, the company’s retail business has continued surging. This is because of the high demand from international buyers.
Alibaba has been under extreme pressure since the encounter with the antitrust fine which cost the company millions. The company is still being closely watched by the Chinese officials. This has generated a lot of pressure for the company as it struggles to recover from its losses.
The company’s financial arm, Ant Financial is also facing some challenges. Last year, regulators scuffled the Initial Public Offering (IPO) saying that there had been regulatory challenges.
The Alibaba stock price took a nosedive as its founder, Jack Ma was under Chinese investigations. News out there is that Jack Ma has not been seen in public since the Ant Financial IPO was pulled down.
The company is also facing competition from companies like Amazon and Pinduoduo. Last year, Pinduoduo active users had surpassed those of Alibaba. Pinduoduo recorded 788 million annual active users as Alibaba lagged with 779 million active users.