Alibaba (NYSE:BABA) stock is gaining on Thursday following the release of the Chinese e-commerce company’s earnings report for the second quarter of 2022.
The good news for BABA stock starts with the company’s adjusted earnings per share (EPS) of $1.75. That’s a positive, considering Wall Street’s estimate of $1.53 for the quarter. However, it’s also a 29% drop from the $2.57 per share reported during the same period in 2021.
In addition to that, Alibaba reported revenue of $30.69 billion for Q2. This figure was better than the $29.97 billion in revenue analysts had expected. Revenue also came in mostly stable compared to last year. Alibaba saw a 1% drop in its commerce business, but that was offset by a 10% growth in its cloud segment.
BABA Stock: Covid-19 Negatively Affected Earnings
According to Alibaba, the decline in commerce revenue is a result of the pandemic. The company points out lower consumption in affected areas like fashion and accessories as well as consumer electronics.
Toby Xu, CFO of Alibaba, said the following about the earnings report sending BABA stock higher.
“Despite the challenges posed by the COVID-19 resurgence, we delivered stable revenue performance yearover-year. We have narrowed losses in key strategic businesses given ongoing improvements in operating efficiency and increasing focus on cost optimization.”
BABA stock trading volume is off to a strong start this morning with 17 million shares on the move. That’s quickly closing in on the company’s daily average trading volume of around 28.1 million shares.
BABA stock is up 2% as of Thursday morning. However, the stock is still down 18% year-to-date (YTD) as well.
Investors seeking more recent stock market news are in the right place!
InvestorPlace has all of the hottest stock news for traders to dive into for Thursday! That includes what has Senseonics (NYSEMKT:SENS) stock rising, this morning’s biggest pre-market stock movers and the latest gene-editing stock news. You can find all of that at the following links!
More Thursday Stock Market News
- Why Is Senseonics (SENS) Stock Heating Up Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
- Why Are Gene Editing Stocks NTLA, ALNY, CRSP, BEAM Up Today?
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
