Alibaba Analysts Have Been Cutting Their Forecast For 12-Month Earnings Over Past 3 Weeks

Alibaba Group Holding Limited’s BABA earnings forecast has been cut by analysts to a one-year low just as the Chinese e-commerce giant prepares to announce its second-quarter earnings results early next month, Bloomberg reported Thursday.

What Happened: The analysts have cut their consensus 12-month earnings forecast for Alibaba by almost 5% over the past three weeks to the lowest since July 2020, as per the report, citing Bloomberg-compiled data.

The earnings forecast was slashed by the analysts, citing weak consumer spending in China.

See Also: What To Expect When Alibaba Reports Its Q2 Results

Why It Matters: Alibaba is slated to report its second-quarter earnings results on Nov. 5, a week before China’s “Singles Day” online shopping festival.

Alibaba has been hurt by the regulatory crackdown and slowing economic recovery in China. The stock’s year-to-date losses are at 28.3%.

Alibaba has been facing increased regulatory scrutiny since last year after a speech by co-founder Jack Ma rubbed the Chinese Communist Party the wrong way. The e-commerce giant was also forced to shelve IPO plans for its subsidiary Ant Group last year.

Earlier this year, Ant Group was forced to organize as a financial holding company that comes under the purview of the Chinese central bank.

Price Action: Alibaba shares closed almost 0.4% lower in Thursday’s regular trading session at $166.78.

Read Next: Alibaba Lags Behind In Hong Kong While Rivals Strike Gains As Markets Reopen After 2-Day Pause

Photo: Courtesy of Alibaba