Alibaba revenue growth flatlines for first time as China’s lockdowns bite
Alibaba Group Holding Ltd, on Thursday reported flat quarterly revenue growth for the first time in its history, showing how China’s COVID lockdowns have hit its business. The slowdown adds to challenges facing China’s e-commerce giant, which has enjoyed double-digit revenue growth almost every quarter since it went public in 2014, as it navigates Beijing’s crackdown on tech companies as well as its scrutiny of founder Jack Ma. Still, Alibaba’s performance was better than expected and its shares jumped 5% in pre-market trading. China locked down dozens of cities between April and May as the Omicron COVID variant swept through the country, with major cities, including Shanghai, facing some of the harshest restrictions that paralysed intra and inter-city delivery and prevented households from shopping online. Analysts at Nomura estimated in mid-April that 45 cities in China, representing 40% of its GDP, were under full or partial lockdowns. Alibaba said: “Following a relatively slow April and May, we saw signs of recovery across our businesses in June.
Alibaba revenue growth flatlines for first time as China’s lockdowns bite
Alibaba Group Holding Ltd, on Thursday reported flat quarterly revenue growth for the first time in its history, showing how China’s COVID lockdowns have hit its business. The slowdown adds to challenges facing China’s e-commerce giant, which has enjoyed double-digit revenue growth almost every quarter since it went public in 2014, as it navigates Beijing’s crackdown on tech companies as well as its scrutiny of founder Jack Ma. Still, Alibaba’s performance was better than expected and its shares jumped 5% in pre-market trading. China locked down dozens of cities between April and May as the Omicron COVID variant swept through the country, with major cities, including Shanghai, facing some of the harshest restrictions that paralysed intra and inter-city delivery and prevented households from shopping online. Analysts at Nomura estimated in mid-April that 45 cities in China, representing 40% of its GDP, were under full or partial lockdowns. Alibaba said: “Following a relatively slow April and May, we saw signs of recovery across our businesses in June.