Alibaba’s growth misses target making Yahoo investors groan

Oliver Smith
Follow Oliver
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.

Related articles