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BABA Stock Jumps as Alibaba Beats on Earnings

Source: Kevin Chen Photography / Shutterstock.com

Alibaba (NYSE:BABA) stock is gaining on Thursday following the release of the Chinese e-commerce company’s earnings report for the second quarter of 2022.
The good news for BABA stock…

Source: Kevin Chen Photography / Shutterstock.com

Alibaba (NYSE:BABA) stock is gaining on Thursday following the release of the Chinese e-commerce company’s earnings report for the second quarter of 2022.

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The good news for BABA stock starts with the company’s adjusted earnings per share of $1.75. That’s a positive considering Wall Street’s estimate of $1.53 for the quarter. However, it’s a 29% drop from the $2.57 per share reported during the same period of the year prior.

In addition to that, Alibaba reported revenue of $30.69 billion for the second quarter of the year. This is better than the $29.97 billion in revenue that analysts were expecting. Revenue is mostly stable compared to last year. That’s due to a 1% drop in commerce business that’s offset by a 10% growth in its Cloud segment.

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BABA Stock: Covid-10 Negativly Affected Earnings

According to Alibaba, the decline in commerce revenue is the result of the Covid-19 pandemic. The company points out lower consumption in fashion and accessories, as well as consumer electronics as areas affected by this.

Toby Xu, CFO of Alibaba, said the following about the earnings report sending BABA stock higher.

“Despite the challenges posed by the COVID-19 resurgence, we delivered stable revenue performance yearover-year. We have narrowed losses in key strategic businesses given ongoing improvements in operating efficiency and increasing focus on cost optimization.”

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BABA trading volume is off to a strong start this morning with 17 million shares on the move. That’s quickly closing in on the company’s daily average trading volume of around 28.1 million shares.

BABA stock is up 1.8% as of Thursday morning. Even so, the stock is still down 19.6% year-to-date.

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Investors seeking more recent stock market news are in the right place!

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InvestorPlace has all of the hottest stock news for traders to dive into for Thursday! That includes what has Senseonics (NYSEMKT:SENS) stock rising, this morning’s biggest pre-market stock movers, as well as the latest gene-editing stock news. You can find all of that at the following links!

More Thursday Stock Market News

  • Why Is Senseonics (SENS) Stock Heating Up Today?
  • Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
  • Why Are Gene Editing Stocks NTLA, ALNY, CRSP, BEAM Up Today?

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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The post BABA Stock Jumps as Alibaba Beats on Earnings appeared first on InvestorPlace.

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