🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Alibaba Sees Stocks Slide After Projecting Slow Growth

Published 05/25/2020, 01:23 AM
Updated 05/25/2020, 01:30 AM
© Reuters.
JD
-
BABA
-
9988
-

By Gina Lee

Investing.com – Alibaba (NYSE:BABA) Group Holding (HK:9988) saw its shares slide after projecting slow revenue growth in 2020.

The Chinese e-commerce giant forecast sales growth of around 27.5% to CNY 650 billion ($91.1462 billion) for the year on Monday, below analyst estimates and down from the previous sales growth of 35%.

Meanwhile, rival JD.com (NASDAQ:JD) forecast better-than-expected results for the second quarter.

The company has lost more than $70 billion of its market value since the virus outbreak in January. It posted a March quarter revenue of CNY 114.3 billion. Although the revenue beat expectations, it was Alibaba’s slowest pace of expansion since records started.

The slowing growth reflects a tepid outlook for China’s economic recovery from the economic impact of COVID-19 and added to fears of ever-escalating U.S.-China tensions.

China formally tabled new national security laws for Hong Kong and Macau at the opening session of the National People’s Congress on Friday, with U.S. President Donald Trump threatening strong action should the laws be enacted. The news triggered protests in Hong Kong on Sunday, with police firing tear gas and a water cannon.

Chinese foreign Minister Wang Yi warned that the U.S. was edging towards a “new Cold War” with China on Sunday.

Taiwan, an ongoing spat about the origins of COVID-19 and Hong Kong are issues ramping up tensions between the two countries, threatening to derail a hard-fought phase one trade deal and further contributing to Alibaba’s slow revenue growth.

Alibaba’s Hong Kong stock lost 1.72% to HK$194.80 ($25.11) by 1:22 AM ET (6:22 AM GMT) after shedding up to 4% earlier in the session.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.