The Magazine for Asian Investors
Alibaba growth has slowed significantly, figures released Thursday show. According to the figures, revenues for Q3 grew at the slowest pace since the company was publicly listed. Revenue grew 242.58 billion yuan, less than previously expected.
In the core business, it was only 7% growth in the end. On Thursday after the quarterly results were released, Alibaba CEO Daniel Zhang said, “With 1 billion high-quality AACs, we believe we have substantively captured all consumers with purchasing power in China. Our focus will shift from new user acquisition to user retention and ARPU growth.”
With this, Alibaba probably admits that it no longer expects any major customer growth in China. Instead, it now wants to concentrate on customer retention.
The Alibaba share (HKG: 9988) listed on the Hong Kong stock exchange is still in downward movement. YTD, the share is down 8.43% on the account. Year-on-year, the share is even 55.12% in the red. So far, no clear bottoming out can be seen, especially with the uncertainty factor of Ukraine. Therefore, it is probably better to just observe the share at the moment.