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Technology Ecommerce Alibaba

Alibaba expected to report a drop in profits in quarterly results


By Danielle Long | Acting APAC Editor

May 4, 2018 | 2 min read

Alibaba is expected to post its first decline in profit in one and a half years when the e-commerce giant announces its latest quarterly report.

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Analysts are attributing the projected decline to the folding of Alibaba’s loss-making businesses as well as increased spending in its battle with rivals such as Tencent.

According to Bloomberg, the e-commerce giant’s revenue is still expected to climb 53% to RMB 59bn ($9.3bn), however the figure indicates the company’s smallest growth in nearly two years.

Alibaba’s investment in new initiatives is cited as a major contributor to the declining revenue, along with its decision to invest more in businesses such as its finance division Ant Financial and local delivery service

Analysts also cited the-commerce giant's increased spending on its logistics company Cainiao and video platform Youku Todou, which is locked in a fierce battle with Tencent Video and Baidu’s iQiyi.

Technology Ecommerce Alibaba

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Alibaba Group Holding Limited is a Chinese multinational e-commerce, retail, Internet, AI and technology conglomerate founded in 1999.

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