Business World

Alibaba shares plunge 10% after weaker earnings and slowdown warning

The shares of Alibaba fell over 10% in Hong Kong on Friday after the tech giant warned of weaker growth this year as China’s economy slows and Beijing continues its regulatory crackdown.

This was Alibaba’s steepest decline since its listing in the city in November 2019. The fall in Hong Kong followed a similar plunge on Thursday in its share price on Wall Street after the company reported disappointing quarterly earnings and warned that results for the year will miss analysts’ estimates.

So far this year, Alibaba’s stock has dropped 40%, wiping about $234 billion from the value of the company. Friday’s plunge dragged down Hong Kong’s benchmark Hang Seng Index, which fell 11%.

Alibaba’s sales grew 29% last quarter from a year ago, to $31.1 billion. Wall Street was expecting revenue of $32.1 billion. Earnings per share fell 38% from a year ago and were below expectations. The company 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’s results come one week after the company wrapped up its annual Singles Day online shopping extravaganza. Chinese consumers continued to shop for bargains during the event, but sales growth for the platform was slower than last year.

Part of that may be because of the regulatory environment, but Alibaba is also facing tougher competition as well as a slowdown in the Chinese economy.

Rival (JD) also reported earnings on Thursday. Sales and profits topped forecasts, and the company’s shares closed up 6% in New York.

On Friday in Hong Kong,’s shares rose more than 9%.

“Consumers and business partners increasingly trust and rely on JD, and we were able to outpace the industry growth in China in the third quarter,” president Lei Xu said in the earnings release.