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.
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.