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Alibaba expected to report a drop in profits in quarterly results

Alibaba Expected To Report A Drop In Profits In Quarterly Results

Alibaba is Expected to post its first decline in profit in one and a half years when the e-commerce giant announces its latest quarterly report.

Analysts are attributing the projected decline to the folding of Alibaba’s loss-making businesses as well as Increased Spending in its battle with rivals such as Tencent.

According to Bloomberg, the e-commerce giant’s revenue is still expected to climb 53% to RMB 59bn ($9.3bn), however the figure indicates the company’s smallest growth in nearly two years.

Alibaba’s investment in new initiatives is cited as a major contributor to the declining revenue, along with its decision to invest more in businesses such as its finance division Ant Financial and local delivery service

Analysts also cited the-commerce giant's increased spending on its logistics company Cainiao and video platform Youku Todou, which is locked in a fierce battle with Tencent Video and Baidu’s iQiyi. 

This post first appeared on How To Organize Small Kitchen, please read the originial post: here

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Alibaba expected to report a drop in profits in quarterly results


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