Alibaba (BABA) reported quarterly results before the market open Friday that beat estimates as total gross merchandise volume for the year hit a record $1 trillion. Alibaba stock fell.
The China e-commerce giant reported adjusted earnings of $1.30 per share, up from $1.28 a year earlier. Revenue grew 22% in local currency to $16.14 billion. Wall Street expected earnings of 85 cents on revenue of $15.1 billion. The results were for its fiscal fourth quarter for the period ended March 31.
The company said it expects revenue of $91 billion in fiscal 2021. But it cautioned, “It is not possible to determine the ultimate impact of the Covid-19 pandemic on our business operations and financial results.”
For the 12-month period ended March 31, Alibaba said it achieved a record $1 trillion in gross merchandise volume.
Alibaba Stock Activity
Alibaba stock dropped 5%, near 201.52, during morning action on the stock market today. On Tuesday, Alibaba stock broke out above a 216.20 buy point in a cup with handle, then pulled back below that buy point. Alibaba stock remained just above its 50-day moving average.
“Our overall business continued to experience strong growth, with a total annual active consumer base of 960 million globally, despite concluding the fiscal year with a quarter impacted by the economic effects of the Covid-19 pandemic,” Chief Executive Daniel Zhang, in written remarks with the earnings release.
Cloud computing revenue shot up 58% in local currency terms. Last month, Alibaba announced plans to invest $28 billion over three years in its cloud infrastructure.
The company ended March with 726 million users on its platform, up 2%, or 15 million, from the December quarter. Monthly mobile active users climbed 2.7% to 846 million.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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