The Chinese online shopping behemoth has been slammed in recent months by Beijing’s widening crackdown on private business, stoking concerns about its future. On Tuesday, it reported a drop in earnings despite an increase in sales.
Net income of 45.1 billion yuan, or about $7 billion, slipped from 47.6 billion yuan it earned a year earlier. But its adjusted earnings were a bit better than recently lowered estimates from analysts. Alibaba’s revenue of 205.7 billion yen, or about $32 billion, while up 34% from a year ago, fell a bit short of expectations. Analysts surveyed by Refinitiv had forecast revenue would reach 209 billion yuan.
The company tried to assure investors by announcing it will now repurchase $15 billion in shares through next year, up from a $10 billion repurchase plan that had been in place. It also disclosed it had repurchased $3.7 billion worth of its US-traded shares since April.