JD.com soars to 8-month high, while Alibaba (BABA) falls
06:26, 19 November 2021
Stocks in JD.com and Alibaba Group moved in opposite directions on Friday after the two Chinese multinational technology firms reported their earnings.
Shares of JD.com rose by 6.8% to HKD345 ($44.28) at midday in Hong Kong – their highest level since March, while Alibaba plunged to its lowest level in over six weeks, reaching HKD140, down 10.3%.
The quarterly earnings, which came after Asian trading hours on Thursday, showed strong earnings for JD.com and disappointing results for Alibaba. The US-listed stock of Alibaba fell by 11.1%, while that of JD.com rose by almost 6%.
BABA’s earnings come up short
In the three months ending September, Alibaba booked CNY200.7bn ($31.1bn) worth of revenue, rising 29% year-on-year, but missing the Refinitiv analysts’ consensus expectation of CNY204.9bn.
Its bottom line, however, fell. Non-GAAP (generally accepted accounting principle) earnings were at CNY11.20 per American depository share (ADS), down 38% year on year and below the market consensus of CNY12.36.
The decline came even as the number of active users climbed to 1.24 billion in the 12-month through September.
More crucially, Alibaba lowered its revenue growth outlook for the full year ending March 2022 to 20%-23% from nearly 30% previously.
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JD books strong earnings
In contrast to Alibaba, JD.com booked an above-view revenue of CNY218.7bn in its third quarter and showed growth across retail, logistics and new businesses segments.
Non-GAAP earnings per ADS stood at CNY3.16 compared with expectations of CNY2.05.
JD.com’s active users in the 12 months through to September rose by 25% year on year to 552.2 million. The company did not provide a financial outlook for the coming quarters.
Read more: Alibaba Group shares post sharp recovery from all-time low
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