By Dean Seal
Shares of Alibaba Group fell after the company swung to a profit and recorded higher revenue for its fiscal second quarter.
The stock was down 8.2% at $79.94 in premarket trading. Shares are about flat with where they had started the year.
The Chinese e-commerce giant posted a profit of 26,696 million Chinese yuan ($3.66 billion), compared with a loss of RMB22,467 million in the same quarter a year ago.
Earnings were RMB10.77 ($1.48) per American depositary share, and RMB15.63 ($2.14) per ADS after stripping out one-time items.
Revenue rose 9% to RMB224.79 billion ($30.81 billion).
Write to Dean Seal at [email protected]
By Dean Seal
Shares of Alibaba Group fell after the company canceled a spinoff of its Cloud Intelligence Group.
The stock was down 8.2% at $79.94 in premarket trading. Shares are about flat with where they had started the year.
The Chinese e-commerce giant said Thursday morning that the full spinoff of the Cloud Intelligence Group “may not achieve the intended effect of shareholder value enhancement.”
The company said it wouldn’t proceed with the full spinoff and instead focus on developing a sustainable growth model for the business “under the fluid circumstances.”
Write to Dean Seal at [email protected]
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