Alibaba Group is one of the most well-recognized tech businesses in the world. It is the largest e-tailer based on gross merchandise value. The company has also spawned successful businesses in fintech, B2C retail, and other areas. Alibaba Group has been often considered as one of the best ecommerce stocks to buy now. Many Chinese tech stocks have had a difficult time lately, with the communist party revealing its intention to “rein in” certain companies for creating social balance in China. Alibaba has also been in the news because its chairman Jack Ma has had differences of opinion with the communist party. These events have had a negative effect on the price of Alibaba’s stock. However, whether the downtrend is a long-term phenomenon or a short-term issue remains to be seen.
Alibaba Announces Q12022 Earnings Results
Alibaba released its first-quarter 2022 earnings numbers recently on 3rd August 2021. Annual active consumers from China grew modestly from 890 million in Q42021 to 912 million. The international consumer count, meanwhile, grew from 240 million in Q42021 to 265 million. Total revenue increased 34% year-on-year to $205.7 billion. However, this number was much lower than analyst estimates of $209 billion. Non-GAAP earnings per share on a diluted basis was $2.57 (RMB 16.6) and represented a growth of 12% year-on-year. Analysts had estimated the earnings per share to be around RMB 14.4. Mobile monthly active users or MAU increased by 14 million during the quarter to 939 million. Penetration of the Alibaba Group to lesser developed areas of China was a key factor driving this growth. Alibaba has also created fintech giant Ant Financial, and its cloud services serve fintech companies. Alibaba is among the best fintech stocks to buy.
Best Ecommerce Stocks To Buy Now
Alipay and WeChat pay are the top 2 digital payment services in China. Alipay is a service offered by Ant Financial, a business spawned by Alibaba. It is a pioneer when it comes to expanding financial inclusion across China. Alibaba has a multitude of product offerings across e-commerce, entertainment, and fintech. This has allowed the company to amass big data that is almost unrivalled throughout the world.