Chinese retail giant reported better-than-expected results for its first quarter. Yet, Alibaba’s stock lost almost 6% in the end of the trading week. The decline was likely caused by worsened outlook for the rest of the year, caused by fear of ongoing U.S.-China trade disputes, which American president Donald Trump highly contributes to.
Chief Executive Daniel Zhang said on the company’s earnings presentation that some signs of recovery were present in April already. Yet, he warned of persistent uncertainty. April results showed that the second quarter could be much better, when the month showed similar sales growth as in last quarter of 2019, that is before the pandemic outbreak. According to Alibaba representatives, it can be perceived positively as there have been no major changes in terms of the “consumption power” of Chinese consumers. The demand for goods has not been affected much.
