Alibaba sees lowest revenue growth rate since its IPO

Alibaba Group Holding Ltd. reported the slowest revenue growth since it went public.

Alibaba’s revenue growth reflects how China’s crackdown on its technology sector is taking a financial toll on the e-commerce giant.

Sales rose 9.7% for the three months ending in December, far below the 40%-plus growth that was common before the government scrutiny began.

Net income tumbled 74% to 20.4 billion yuan ($3.2 billion), after the company took a big hit from losses in its global investment portfolio.

Annual active consumers rose 43 million to a better-than-expected 1.28 billion while cloud revenue jumped 20%.

The company warned in November that revenue growth for the fiscal 2022 year would be 20% to 23%, compared with the 27% that analysts had been projecting.

Its valuation has dropped from a high of about $860 billion to $291 billion.

Bloomberg News reported this week that Chinese authorities are asking the nation’s biggest state-owned firms and banks to start a fresh round of checks on their financial exposure and other links to Ant Group.


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