Alibaba ([htmwquote]BABA[/htmwquote]) missed its earning target, driving shares farther down for the company that had the world’s largest IPO last year.
The news of the Chinese commerce behemoth’s miss came just after China announced another round of currency devaluation, bringing the total drop of the Yuan to almost 4% compared to last week against the US dollar.
Alibaba stock has been on a roller coaster since inception, the tumble after this earnings announcement brings it down to just 40% of its all-time high. Managment has been unfazed, however, with the CEO Daniel Zhang commenting, “We had a strong quarter and we continued to build the foundations for future growth. We focused our efforts on building healthy GMV growth, delivering the best consumer experience, and improving the quality and sustainability of merchants doing business on our marketplaces. “We are excited about our top strategic priorities, including internationalization, winning in mobile, expanding our ecosystem from cities to villages, and investing in core technologies that will propel our cloud computing business.”
The earnings miss was not all bad news, so his upbeat tone is not unwarrented; its revenue was $3.16 billion versus an expected 3.28, and business great at 34%, which is the slowest of the last few years but not too shabby by any metric.
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