Alibaba's Growth Slows as Chinese Economy Weakens
Posted in: Uncategorized
Alibaba Group’s quarterly sales rose at the slowest pace in at least three years amid a weakening Chinese economy.
Revenue rose 28% to $3.2 billion in the three months ended June, down from an average of 56% in the previous 12 quarters. The Chinese internet and e-commerce giant also announced plans to buy back $4 billion of stock.
The slowing growth stems from e-commerce market saturation in China’s larger, wealthier cities and the company’s strategy of shifting to services over smartphones and tablets, which generate less revenue from ads compared with desktop computers. (Alibaba is a major advertising player, with an expected 4.6% share of the world’s digital ad revenue in 2015, according to eMarketer. The internet giant does not break out details on its ad revenues.)
Post a Comment