Alibaba Group Holding Ltd (BABA.US) stock jumped 6.0% before the opening bell after the Chinese e-commerce giant posted better-than-expected Q3 financial results, as they benefited from the country easing COVID-19 restrictions.
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Revenue: 247.76 billion Chinese yuan vs 245.18 billion Chinese yuan expected, up 2% year-on-year
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Earnings per American depositary share (ADS): 19.26 yuan vs 16.26 yuan expected, up 14% year-on-year.
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Net income: 46.82 billion yuan vs 34.02 billion yuan, up 69% year-on-year.
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Non-GAAP diluted earnings per American Depositary Shares (ADS) for the quarter jumped 14% year-over-year to RMB19.26, topping estimates of about RMB16 by Thomson and Bloomberg.
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During the quarter ended December 31, 2022, Alibaba repurchased 45.4 million ADSs for approx. $3.3 billion under its share repurchase program.
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Analysts expect solid revenue growth in the near future as the full effect of the Chinese economic re-opening is felt. Morgan Stanley called Alibaba its “top pick” in the Chinese tech sector for the first time in three years, in a recent note.
Key highlights from Alibaba Group’s Q3 earnings results
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Open account Try demo Download mobile app Download mobile app“We delivered a solid quarter despite softer demand, supply chain and logistics disruptions due to impact of changes in COVID-19 measures,” said Daniel Zhang, Chairman and Chief Executive Officer of Alibaba Group. “Looking ahead, we expect continued recovery in consumer sentiment and economic activity. We are focused on driving growth for our customers amid the competitive landscape, and creating sustainable, long-term value for our shareholders.”
Before the earnings release Michael Burry’s last 13F disclosure revealed that a famous investor best known from the movie Big-Short had established a sizable long position in Alibaba at an entry price of around $88.
Alibaba (BABA.US) stock rose sharply in pre-market boosted by solid quarterly results. Also the medium-term 50-day SMA (green line) crossed above the long-term 200-day SMA (red line). This formed a bullish ‘golden cross’ formation, which can at times precede a move higher. Nevertheless as long as price sits below key resistance at $122.00, which is marked with previous price reactions an d23.6% Fibonacci retracement of the massive downward move launched in October 2022, the main sentiment remains bearish. Source: xStation5
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