ALBAWABA - Alibaba Group Holding, a Chinese company, announced an 86 percent slump in its fourth-quarter profit on Tuesday, mostly as a result of changes in stock investment value, according to Reuters, causing its U.S.-listed shares to drop about 6 percent in early trade, despite sales exceeding expectations.
Chinese firm plans to deliver Alibaba orders with rockets, 1Hr delivery anywhere in the worldGroup net income, reported at 3.27 billion yuan ($452 million), a harsh contrast to 23.52 billion yuan ($3.25 billion) from a year ago, causing a sharp 5.6 percent decline in early New York trading hours.
Alibaba also revealed it will bring back the strategy it first proposed in 2022 to transform its secondary listing in Hong Kong to a primary listing while maintaining its primary one in New York, a year after announcing its most significant restructuring in the company's 25-year journey in March of last year, calling for the firm to be divided into six separate divisions and to revitalize its key operations, including domestic e-commerce.
On the other hand, as competitor Alibaba Group Holding's profit fell, Tencent Holdings announced a much better-than-expected 62 percent jump in profits, as Bloomberg reports, underscoring the significant differences between China's two internet powerhouses amid an uphill struggle to rebound in the aftermath of Covid.
Prior to the most recent results, Tencent's market capitalization reached a staggering $460 billion, while Alibaba's had dropped to around $205 billion. Neither of both businesses, however, provided investors with convincing guarantees on the dire circumstances facing China's faltering economy.
