What's Going On With Alibaba Stock Thursday?

Alibaba Group Holding Limited (NYSE: BABA) reported second-quarter FY23 revenue growth of 9% year-on-year to $30.81 billion, beating the consensus of $30.77 billion.

Adjusted earnings per ADS of $2.14 beat the consensus of $2.11. 

Segments: Taobao and Tmall Group revenue grew 4% Y/Y to $13.39 billion. Alibaba International Digital Commerce Group revenue increased by 53% Y/Y to $3.36 billion. Local Services Group revenue grew by 16% Y/Y to $2.13 billion. 

Cainiao Smart Logistics Network Limited's revenue increased 25% Y/Y to $3.13 billion. Cloud Intelligence Group grew by 2% Y/Y to $3.79 billion. Digital Media and Entertainment Group increased by 11% Y/Y to $792 million. All others remained flat Y/Y at $6.59 billion.

Taobao and Tmall Group: Revenue from China's commerce retail business grew by 3% Y/Y to $12.69 billion, led by Taobao and Tmall. 

Direct sales and other revenue grew by 6% Y/Y to $3.28 billion, primarily due to strong sales driven by the consumer electronics category.

Alibaba International Digital Commerce Group: Revenue from International commerce retail business grew by 73% Y/Y to $2.60 billion, driven by the solid performance of all major retail platforms. During the September quarter, the combined order growth of AIDC's retail businesses was approximately 28% Y/Y, driven by Lazada, AliExpress, Trendyol, Daraz, Miravia, and Alibaba.com. During the quarter, revenue from AIDC exhibited robust growth, increasing by 53% Y/Y.

Cloud Intelligence Group: It continues to improve revenue quality by reducing the revenue from project-based contracts with low margins. Revenues from public cloud products and services increased during this quarter, which drove improved profitability.

Cainiao Smart Logistics Network Limited: Revenue from cross-border fulfillment solutions drove the growth. Cainiao rolled out its premium 5-day delivery service for consumers in eight countries and regions.

Digital Media and Entertainment Group: Strong revenue growth of offline entertainment businesses of Damai and Alibaba Pictures and an increase in Youku's subscription revenue drove the change. China's box office during the summer movie season hit a record high this year. 

IPO Update: Alibaba put the Freshippo (Hema) IPO offering on hold as it evaluated market conditions. Meanwhile, the additional semiconductor embargo on China by the U.S. posed uncertainties for the prospects of Cloud Intelligence Group. Alibaba International Digital Commerce Group is in preparation for external fundraising. Cainiao Smart Logistics Network Limited has applied for an IPO in Hong Kong.

Jack Ma: Alibaba co-founder Jack Ma's family trust looks to sell 10 million ADSs of Alibaba for about $871 million on November 21. JSP Investment and JC Properties, part of the family trust, will conduct the sale, Reuters reports. 

Dividend: Alibaba Group Board approved a FY23 dividend of $0.125/Share or $1.00/ADS.

Price Action: BABA shares traded lower by 7.94% at $80.16 premarket on the last check Thursday.