Why Alibaba Stock Dropped After Earnings
Shares of Alibaba Group Holding (NYSE: BABA), the Chinese e-commerce giant, tumbled 6% through 12:05 p.m. ET on Wednesday after reporting slight misses on both sales and earnings in its fiscal Q3 2023 financial report this morning.
Heading into earnings day, analysts had predicted Alibaba would earn $2.69 per American depositary share (each ADS represents eight common shares of stock on the Hong Kong market) on sales of $36.74 billion. As it turned out, though, earnings fell short at $2.67 per ADS, while sales came in just shy of expectations at $36.7 billion.
Are investors overreacting to a miss of just $0.02? A miss that -- let's face it -- amounts to less than 1% of the money Alibaba was "supposed" to earn? Perhaps. But it's worth observing that Alibaba's earnings were also objectively terrible.
Source Fool.com
Alibaba Group Holding Ltd ADR Stock
With 46 Buy predictions and 3 Sell predictions Alibaba Group Holding Ltd ADR is one of the favorites of our community.
As a result the target price of 105 € shows a positive potential of 39.81% compared to the current price of 75.1 € for Alibaba Group Holding Ltd ADR.
