Internet giant based in China alibaba (BABA) reported better-than-expected fiscal third-quarter earnings early Wednesday, and the company also announced a $25 billion increase in its stock repurchase program. BABA stock rose early Wednesday morning.
X
Alibaba announced third-quarter revenue of $36.67 million, or 260.35 million Chinese yuan. Meanwhile, Alibaba’s adjusted earnings per American Depositary Share (ADS) was $2.67. Analysts had expected the internet giant to report EPS of $2.66 and total revenue of $36.16 billion, according to FactSet.
The company’s total revenue from Taobao and Tmall online marketplaces rose 3% year-on-year to $18.18 billion in local currency terms. Meanwhile, Cloud Intelligence Group’s revenue for the third quarter increased by 3% to $3.95 billion.
The company also announced Wednesday that its board of directors approved a $25 billion increase in its stock repurchase program. Alibaba Chief Financial Officer Toby Hsu said in an earnings call that the increase shows the company’s “confidence in its business and cash flow outlook.”
This comes after Alibaba announced on January 2 that it would buy back 3.3% of its outstanding shares in calendar year 2023 for a total of $9.5 billion. During the fiscal third quarter, Alibaba purchased 292.7 million of his common shares, representing 36.6 million ADS, for a total of $2.9 billion.
“Our top priority is to reignite the growth of our core businesses of e-commerce and cloud computing. We look forward to driving the growth of Cat Group and strengthening our market leadership next year,” CEO Eddie Wu added in the earnings call.
Alibaba stock price performance
BABA stock rose about 1% in premarket trading Wednesday. On Tuesday, BABA stock rose 4.8% to 78.23. Alibaba stock soared on January 23 after reports that co-founder Jack Ma and business associate Joe Tsai have been buying BABA stock in recent months.
Alibaba stock rose above its 50-day moving average this week and broke out of the downtrend line on Tuesday. Risk-tolerant investors can use this line to plan early aggressive buy points.
The stock remains more than 75% below its all-time high set in October 2020.
In November 2023, Alibaba reported better-than-expected second-quarter profit, but sellers declined after the company announced it would scrap plans to spin off its cloud division in light of recently expanded chip limits in the United States. caused stock prices to fall.
In the second quarter, Alibaba reported adjusted earnings per share of $2.16 on revenue of $31 billion. BABA equity analysts had expected Alibaba to post adjusted earnings of $2.10 per share and revenue of $31 billion, according to FactSet.
Should you buy or sell Alibaba stock?
Alibaba also announced that its board of directors approved a $2.5 billion cash dividend in November. The dividend is equivalent to $1 per ADS and will be paid to shareholders in US dollars as of the close of trading on December 21st.
The overall rating for Alibaba stock is 66 out of 99. Additionally, BABA stock has a Relative Strength Rating of 19 points and an EPS Rating of 91 points.
PFollow Kit Norton on X, formerly known as Twitter. @kitnorton Cover more range.
You may also like:
Is Tesla a buy or sell?
Full access to IBD stock listings and ratings
Want to learn how to choose blue-chip stocks?Read the Investor Corner
Should you buy a Rivian now with all the Cybertruck hype?
Futures are rising.5 stocks with flashing buy signals in their earnings results
It’s awesome for me to have a web page, which is valuable for my know-how.
thanks admin
Hi there, I check your blogs on a regular basis. Your writing style is awesome, keep it up!
An interesting discussion is definitely worth
comment. I do think that you ought to write more about this issue, it might not be
a taboo matter but generally people do not discuss such
issues. To the next! All the best!!
These are truly fantastic ideas in regarding blogging. You
have touched some nice factors here. Any way keep up wrinting.