E-commerce giant Alibaba Group on Thursday reported weaker-than-expected revenue for its fiscal third quarter, sparking concerns about the company’s slowing growth momentum and sending its shares plunging as much as 10 percent on Wall Street.
The Chinese firm announced revenue of US$4.22 billion for the three months ended December, up 40 percent from a year earlier, but falling short of market expectations.
Analysts polled by Thomson Reuters had been looking for a figure of US$4.45 billion on average.
Meanwhile, margins also slipped as sales through mobile devices, typically smaller-ticket items, accounted for a bigger slice of total sales than in the previous quarter, Reuters noted.
The company reported a monetization rate of just below 2 percent from mobile, which now comprises 42 percent of overall gross merchandise value compared to 36 percent in the previous quarter.
Following the disappointing report and fears of increased regulatory oversight in China, analysts are cutting back on expectations on the e-commerce firm.
A mainland regulator said in a report published Wednesday that Alibaba has failed to do enough to stamp out counterfeit products and other illegal business on its online platforms.
An Alibaba executive said on Thursday that the report from the State Administration for Industry and Commerce was “flawed”, but the comment failed to assuage investors’ concerns.
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