Alibaba Group Holding reported on August 6 that revenue for the quarter ended June 2022 exceeded expectations, despite stable growth due to the impact of COVID-19-related lockdowns in China.
The title of the e-commerce giant listed on Wall Street was up 5% in pre-market trading. However on August 5, JPMorgan Chase estimates the title of Alibaba Group Holding Limited and recommends its purchase. The price target is revised upwards from 140 USD to 145 USD.
China locked down dozens of cities between April and May as the Omicron variant of the coronavirus spread across the country. Cities like Shanghai have faced severe restrictions that have crippled intra- and inter-city deliveries.
In Shanghai, throughout the month of April, households were unable to order on Taobao or Ele.me, Alibaba’s e-commerce and meal delivery sites. The delivery situation improved only slightly in May.
The lockdown was lifted on June 1, just in time for China’s annual June 18 shopping festival. However, this opening did not help boost overall activity in the quarter.
“After a relatively slow April and May, we saw signs of recovery in our business in June. Despite short-term challenges, Taobao and Tmall continue to retain consumers, especially those with high purchasing power”the company said.
The group’s revenue was 205.56 billion yuan (29.90 billion euros) in the 2022 quarter, compared to an average analyst estimate of 203.19 billion yuanaccording to data from Refinitiv.
Net profit attributable to ordinary shareholders for the quarter ended June 30 was 22.74 billion yuan, up from 45.14 billion yuan a year earlier.