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Chinese technology and e-commerce stocks jumped more than 6 percent in early market trading in New York on Thursday. The stock in Hong Kong closed up 5.2 percent earlier.
The pop came even as the company reported revenue of nearly 205.6 billion yuan (about $30.4 billion) in June, compared with the same period last year.
But that topped analysts’ forecasts and net income also beat expectations, at 22.7 billion yuan ($3.4 billion).
The company said its retail sales fell in April and May, especially as Shanghai and other major Chinese cities battled outbreaks that have dampened consumer demand and created logistical nightmares.
But business has rebounded since June, especially as “the logistics and supply chain situation gradually improved after the easing of Covid restrictions,” CEO Daniel Zhang said.
Although growth has stagnated, Zhang said the company wanted to overcome “smooth economic conditions” to “provide stable earnings” and make a positive difference in its bottom line.
However, he warned of a rocky road ahead, pointing to wider economic risks.
“External uncertainties, including but not limited to global geopolitical dynamics, the resurgence of Covid and China’s macroeconomic policies and social trends, are beyond our control as a company,” Zhang told analysts.
“All we can do now is focus on improving ourselves,” he said, adding that Alibaba was focused on cutting losses in businesses such as its supermarket and catering divisions.
Alibaba in 2010 Since its massive IPO in 2014, its shares have had a primary listing in New York.
This is as one of Alibaba’s long-time supporters appears to be pulling back.
SoftBank did not immediately respond to a request for comment.
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