By George Glover
Alibaba Group stock was tumbling Thursday after the Chinese online retailer posted earnings well below analysts' expectations.
Alibaba reported net income of 12.38 billion Chinese yuan ($1.71 million) in the quarter ended March 31, as revenue climbed 7% from a year ago to $32.58 billion. Analysts were expecting net income of $2.93 billion on revenue of $33.28 billion, according to a FactSet survey of analysts.
The e-commerce company's American depositary receipts dropped 4.7% ahead of the U.S. opening bell. Futures tracking the S&P 500 were down 0.5%.
This is breaking news. Read a preview of Alibaba's earnings below and check back for more analysis soon.
Alibaba Group has been on a tear, with the stock up double-digits this year. Earnings could make or break the Chinese online retailer's rally.
Analysts are expecting Alibaba to report net income of 21.07 billion Chinese yuan ($2.93 billion) on revenue of Yen239.63 billion ($33.28 billion) for the quarter ended March 31. A year ago, it reported net income of $453 million on revenue of $30.73 billion.
The market may have already had a taste of what's coming from Alibaba. The company's main rival JD.com posted results on Tuesday. Revenue climbed 16%, and the company's CEO touted "improving consumer sentiment."
Despite a tariff-induced selloff in early April, Alibaba's American depositary shares have soared nearly 60% in 2025. That is far better than the performances of the Hong Kong Hang Seng Index, up 18% this year, and S&P 500, up 0.3%.
Alibaba's gains come on hopes that Chinese consumer spending could be set to rebound. The world's second-largest economy got a boost from a sharp rise in exports over the first quarter. Some economists are worried that growth could stall after a period of disruption triggered by President Donald Trump's tariff plans.
Earlier this week, Washington and Beijing brokered a deal to scale back levies for 90 days. The U.S. also cut its de minimis tariffs on small goods from China to 54% from 120%, which could boost Alibaba's international sales.
Investors have been piling into Chinese stocks on the expectation that Beijing will keep rolling out fiscal stimulus packages in a bid to make sure the country's growth hits its target rate of 5% in 2025.
Write to George Glover at george.glover@dowjones.com
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May 15, 2025 06:00 ET (10:00 GMT)
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