In a market environment full of uncertainty and low expectations, an earnings report that exceeds expectations may bring an unexpected boost to stock prices, especially for a giant whose stock price has dropped 70% from a high point.
On May 26, Alibaba released financial results for the fourth quarter of fiscal year 2022 (that is, Q1 of 2022) and the full year ending March 31, 2022. The financial report shows:
Alibaba's total revenue for the quarter reached 204.52 billion yuan (if not specified, the unit is RMB), an increase of 9% over the previous year, exceeding analysts' expectations of 200,664 billion yuan;
The adjusted EBITA was 15.811 billion yuan, down 30% year on year, higher than the market forecast of 15.3 billion yuan.
After the financial report was released, Alibaba's management said during the performance conference call,Due to the resurgence of the epidemic in the mainland in March, domestic business has been greatly affected. In view of the risks and uncertainties brought about by the uncontrollable and difficult to predict epidemic, no financial guidance will be provided for this year.
In the past, it was difficult to ignite investors' enthusiasm with such financial performance and expectations, but considering the high pressure on the environment and frequent financial thunderstorms from giants, Alibaba still gave the market some surprises. By the close of trading on May 26, EST, Alibaba's stock price had surged nearly 15%.
The pandemic has dragged down GMV, but the performance of users is impressive
The China Business Division is Alibaba's basic business. In Q4 of FY22, the business growth rate was only 8%, lower than the 9% growth rate of total revenue.
Looking at the performance apart, Chinese business...