INTERNATIONAL – China’s Alibaba Group Holding reported lower-than-expected quarterly revenue on Friday, another sign of slowing momentum for China’s giant e-commerce platforms and its economy.
Alibaba’s stock has fallen more than 12 percent this year, weighed down by concern about the planned retirement of founder-Chairman Jack Ma, declining margins and concerns about the impact of a US-China trade spat on ad spending.
Volume of business normally slow in the second quarter ahead of Alibaba’s Singles’ Day sale, which peaks on November 11.
Core e-commerce revenue, which accounts for 84 percent of the total, rose 56 percent to 72.48 billion yuan in the second quarter.
Profit margins remained tight as Alibaba invested heavily in logistics, offline retail and cloud computing.