Alibaba reported sales and earnings for the third quarter that missed forecasts and warned that results for the year will be below estimates as well. The stock sank on the news.
Shares of Alibaba (BABA) were down 10% in early trading Thursday. The Chinese e-commerce giant reported sales growth of 29% from a year ago, to $31.1 billion. But Wall Street was expecting revenue of $32.1 billion. Earnings per share fell 38% from a year ago and also were below expectations.
The company also said that sales for its current fiscal year should rise between 20% and 23% from a year ago. Analysts were predicting growth of nearly 28%.
Alibaba, co-founded by Jack Ma, and fellow Chinese tech giants Tencent (TCEHY), Baidu (BIDU) and TikTok owner ByteDance, have been subject to increased regulatory scrutiny from the Chinese government lately. Beijing has cracked down on large corporations, which has hurt results.
