ONLINE media group Yahoo, one of Alibaba’s largest shareholders, saw its shares tumble 5.8 per cent yesterday after the Chinese e-commerce giant reported slower than expected growth.
Alibaba’s revenue rose 40 per cent to $4.22bn (£2.8bn) in the quarter to the end of December, but missed analyst’s expectations of $4.45bn, sending its shares down 8.8 per cent. The quarterly results are the second since Alibaba’s record-breaking $25bn New York Stock Exchange float last year.
Net income actually fell 28 per cent to $964m, due to “an increase in share-based compensation expense, a one-time charge for financing-related fees and an increase in income tax expenses” during the period.
Earlier this week Yahoo announced plans to spin out its $39bn stake in Alibaba into a separate publically traded company.
Alibaba’s shares closed at $89.81 and Yahoo closed at $43.73 last night.