Chinese e-commerce giant Alibaba’s (BABA) stock fell 11% to close at $143.59 on Thursday after missing on the top and bottom line for its latest quarterly results. The company also lowered its revenue guidance for fiscal 2022.
In a conference call with analysts, Alibaba’s chairman and CEO Daniel Zhang cited “economic headwinds coupled by intensifying market competition” affecting the company’s core commerce business in China.
The company posted second quarter fiscal 2022 revenue of 200.7 yuan, or $31.4 billion, a 29% year-over-year jump. The results still came in below Street expectations of 206.17 yuan.
Alibaba’s cloud revenue grew 34% year-over-year, coming in just slightly above expectations.
The company also missed earnings expectations. Adjusted earnings per share came in at 11.20 yuan, or $1.74.
The e-commerce giant is forecasting revenue growth for fiscal 2022 in the range of 20% to 23%. Analysts had been projecting a rise of 27% for the year.
“This quarter, Alibaba continued to firmly invest into our three strategic pillars of domestic consumption, globalization, and cloud computing to establish solid foundations for our long-term goal of sustainable growth in the future,” Zhang said in the company’s quarterly statement.
The company’s CEO said management would share more details regarding its outlook at its annual investor event on December 16.
Alibaba’s American depository shares (ADRs) have been on a decline earlier this year as Chinese regulators have cracked down on big tech and internet companies under President Xi Jinping’s administration.
The stock had rebounded in early October. Year-to-date the stock is down about $36%.