2023-11-17 08:58:00
© Archyde.com Chinese Alibaba shares fall 10% and $20 billion in market value losses
Arabictrader.com – Alibaba Group Holding Ltd. (NYSE:) shares witnessed ADR. A sharp decline occurred during Friday’s trading, causing huge losses in the company’s market value, amounting to regarding $20 billion, as a result of which the main stock index in Hong Kong fell by more than 2%.
This came following the technology giant and electronic stores in China announced on Thursday the results of its quarterly business for the third quarter of 2023, which showed the group’s transformation into achieving, following the loss it had incurred in the same quarter last year.
According to the report, Alibaba Group’s revenues in the third quarter increased by 9% to 224.8 billion Chinese yuan (or the equivalent of 30.01 billion US dollars), which was close to, but lower than, market estimates of 224.32 billion Chinese yuan.
At the same time, Alibaba’s net profits in the third quarter amounted to 26.7 billion yuan (or the equivalent of $3.6 billion), compared to a net loss of 22.4 billion yuan incurred by the group in the same quarter of the previous year. Alibaba’s diluted earnings per share in the third quarter also increased by regarding 21%. %, reaching 1.35 yuan (or 0.19 dollars).
But despite the good results that showed a significant improvement in the company’s performance, Alibaba announced the cancellation of its previous plans to separate its AliCloud cloud business unit to become an independent subsidiary, which caused these sharp losses in Alibaba Group’s shares on the Hong Kong and New York stock exchanges.
Alibaba indicated that this decision came due to its concerns regarding US restrictions on exports of semiconductors used in artificial intelligence applications to China, which the United States had announced last October, and its competitor Tencent Holdings had expressed similar concerns this week, explaining that These restrictions will force it to search for locally produced alternatives.
However, Alibaba Chairman Joseph Tsai has confirmed that the company will now focus on growing its cloud business unit and providing the necessary investment to grow its artificial intelligence business. He said that Alibaba will move forward with listing Alibaba’s logistics arm, Cainiao, on the Hong Kong Stock Exchange. Kong next September.
In terms of trading, Alibaba’s shares listed on the Hong Kong Stock Exchange (Hang Seng:9988) fell by regarding 9.90% to 73,250 Hong Kong dollars, and Alibaba’s shares listed on the Hong Kong Stock Exchange fell by 7.68% during pre-market trading, to record 143.02 US dollars. This decline, which is the largest one-day decline in more than a year, led to losses of regarding $20 billion from Alibaba’s market value.
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