business news

Alibaba quarterly revenue flat for first time ever in June

Alibaba quarterly revenue flat for first time ever in June
18

Chinese e-commerce giant Alibaba reported stagnant sales growth for the first time in history on Thursday as the country grappled with an economic slowdown and a resurgence of Covid-19 kept consumers jittery.

Revenue came in at 205.6 billion yuan ($30.7 billion) in the April-June quarter, beating analysts’ expectations, though slightly below the same period last year, after the company’s China business segment sales fell, Alibaba said.

Alibaba’s performance is widely seen as a gauge of Chinese consumer sentiment, given its market dominance and its revenue growth has slowed significantly over the past year.

The company is grappling with increasing competition and the economic fallout from severe Covid restrictions, which have hurt consumer sentiment, raised unemployment, and snarled supply chains.

“After a relatively slow April and May, we saw signs of recovery across our businesses in June,” Alibaba Group Chairman and CEO Daniel Zhang said in a statement.

The company’s revenue growth stagnated “primarily due to a decline in China business segment revenue,” although this was offset by growth in the cloud segment, Alibaba added.

Comment here