Alibaba Earnings Suffer Amid Its Push for Shopping on Mobile Devices
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Chinese e-commerce giant Alibaba Group’s sales were below analysts’ estimates as founder Jack Ma spent more money to attract customers on mobile phones.
Revenue was $4.2 billion in the quarter ended Dec. 31, compared with the $4.4 billion average of 25 estimates, the Hangzhou-based company said in a statement. Net income fell 28% to $957 million because of compensation expenses and a one-time charge. That compared with the $1.4 billion average of 19 analyst estimates compiled by Bloomberg.
Mr. Ma is investing in shopping apps and promoting Alibaba’s platforms to reach a target of working with more than 10 million small businesses outside China. After September’s initial public offering and a record $9.3 billion in transactions during a Nov. 11 sales promotion, Alibaba faces a decelerating Chinese economy and scathing criticism from the government for alleged lax oversight of its websites.
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