Why Alibaba Shares Are Rising Today

Alibaba Group Holding Limited BABA reported fourth-quarter FY21 revenue growth of 9% year-on-year to $32.19 billion, beating the consensus of $29.94 billion.

Segments: The China commerce segment grew by 8% Y/Y to $22.14 billion, Cloud by 12% Y/Y to $2.99 billion, Local consumer services by 29% Y/Y to $1.65 billion, and International commerce by 7% Y/Y to $2.26 billion.

China Commerce (69% of revenue): The online physical goods GMV for Taobao and Tmall, excluding unpaid orders, recorded a low single-digit year-over-year decline due to Covid-19.

Also Read: Alibaba's Overseas Growth Push Gets Critical To Beat Domestic Slowdown

International Commerce (7% of revenue): Lazada mainly drove the revenue growth. At the same time, Trendyol was affected by Turkish lira depreciation, and AliExpress orders declined due to the EU's VAT restructuring and the Russia-Ukraine conflict hampering supply chain and logistics.

Cainiao (6% of revenue): Revenue grew 16% Y/Y to $1.83 billion.

Annual active consumers reached 1.31 billion for the twelve months ended March 31, an increase of 28.3 million from the twelve months ended December 31.

Non-GAAP earnings per ADS of $1.25 beat the consensus of $1.10. Alibaba used $(1.1) billion in operating cash flow.

"Alibaba delivered on the goal of serving one billion annual active consumers in China this past quarter and achieved a record RMB 8,317 billion in global GMV for the fiscal year. Despite macro challenges that impacted supply chains and consumer sentiment, we continued to focus on customer value proposition and building the capabilities to deliver value. We saw tangible progress across our businesses, especially in operational improvements in key strategic areas," said Daniel Zhang, Chair and CEO.

Price Action: BABA shares traded higher by 5.43% at $86.60 in the premarket on the last check Thursday.

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