BABA Stock: 5 Things for Alibaba Investors to Know as Shares Go Red Today

Alibaba (NYSE:BABA) earnings for the fourth quarter of fiscal year 2021 and for all of FY2021 have BABA stock falling on Thursday. This is due to its non-GAAP diluted earnings per American Depositary Share (ADS) of $1.58 being below analysts’ estimates of $1.78. However, the company’s revenue of $28.6 billion just beat analysts’ estimates of $28.06 billion.

Alibaba Group (BABA) headquarters sign located in Hangzhou China

Source: Kevin Chen Photography /

Additionally, for FY2021, the firm reported revenue of $109.48 billion and non-GAAP diluted earnings per ADS of $9.94. However, both of these figures were below what analysts were looking for — which was revenue of $110.41 billion and earnings numbers of $10.26 per ADS.

Here’s what else is worth mentioning from the most recent Alibaba earnings report:

  • Earnings per ADS for the quarter are 12% better than the same period of the year prior.
  • Revenue for the quarter comes in 64% higher year-over-year.
  • Alibaba also reported its first operating loss as a public company during the quarter due to a massive anti-monopoly fine of $2.8 billion.
  • Moreover, the earnings report also includes a net loss of $1.17 billion.
  • That’s much worse than the company’s net income profit from the same time last year.

Daniel Zhang, chairman and CEO of Alibaba, said this about the BABA stock earnings:

“Alibaba achieved a historic milestone of one billion annual active consumers globally in the fiscal year ended March 2021. … We remain very excited about the growth of China’s consumption economy, which is benefiting from the acceleration of digitalization in all aspects of life and work. We will continue to focus on customer experience and value creation through innovation, as we pursue our mission to make it easy to do business anywhere in the digital era.”

Furthermore, Chief Financial Officer Maggie Wu also mentioned that the firm expects to reach more than 930 billion yuan in revenue during FY2022. “Given the market potential and our proven profit and cash flow generation capabilities, we plan to use all of our incremental profits and additional capital in fiscal year 2022 to support our merchants and invest into new businesses and key strategic areas that will help us increase consumer wallet share and penetrate into new addressable markets,” she added.

BABA stock was down 4.6% as of Thursday morning.

On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Nick is a web editor at InvestorPlace.

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