Alibaba Earnings: BABA Stock Drops 5% Despite Q4 Beats

Alibaba (NYSE:BABA) earnings for the Chinese e-commerce and tech company’s fiscal fourth quarter of 2020 have BABA stock falling on Friday. That’s despite its adjusted earnings per share of 9.20 yuan coming in above Wall Street’s estimate of 6.20 yuan. Its revenue of 114.31 billion yuan is also better than analysts’ estimates of 108.38 billion yuan.

Alibaba Earnings: BABA Stock Drops 5% Despite Q4 Beats

Source: zhu difeng /

Here are some additional highlights from the most recent Alibaba earnings report.

  • Adjusted per-share earnings are up 7% from 8.57 yuan in the same period of the year prior.
  • Revenue is sitting 22% higher than the 93.45 billion yuan reported in fiscal Q4 2019.
  • Operating income of 7.13 billion yuan is a 19% decrease year-over-year from 8.77 billion yuan.
  • The Alibaba earnings report also includes a net income of 348 million yuan.
  • This is down 99% compared to the company’s net income of 23.38 billion yuan in the same period of the year prior.
  • The report explained: “The year-over-year decrease was primarily due to a net loss in investment income, mainly reflecting decreases in the market prices of our equity investments in publicly-traded companies, compared to a net gain recorded in the same quarter of 2019.”

Daniel Zhang, chairman and CEO of Alibaba, said this in the fiscal Q4 earnings report.

“Alibaba achieved the historic milestone of US$1 trillion in GMV across our digital economy this fiscal year. 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.”

Alibaba also includes guidance in the current earnings report. It’s expecting revenue for fiscal 2021 to come in above 650 billion yuan. Wall Street is looking for BABA to report revenue of 664.34 billion yuan for the fiscal year.

BABA stock was down 5.4% as of Friday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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