China’s internet giants just had a bad week – that probably can tell us how harsh the regulatory crackdown is…
I can feel 🤦 But how bad is it?
Let’s start with Alibaba first. The impact of regulations, intensifying competition and slowdown in the Chinese economy hit Alibaba hard. 😢
- Both its revenue and profit came below market expectations… almost the worst since Covid started as consumers were reluctant to spend on the economic slowdown.
- These factors have also forced Alibaba to slash its growth targets, from 30% to 20%.
That’s disappointing… Alibaba’s share price fell 11% after announcing the numbers 📉 But that’s not the end – others like Bilibili and Pinduoduo all plunged.
Was it all bad? 👀
Well almost… for the same reason. The video-streaming site Bilibili slightly missed investors’ forecasts, while local search engine Baidu also warned of a slowdown in the ad business.
- Down, down, down 🤦 Bilibili plunged nearly 15% after issuing convertible debt. Baidu was down another 3%… dragging down the market (adding up together).
- I’m up though! 😃 JD’s stock price jumped over 5% after beating estimates. Its revenue jumped 25% as it took users away from rivals like Alibaba.
Another fine… Freshly came out during the weekend, Alibaba/Tencent/Baidu and 40 other local internet companies were fined again for antimonopoly violations… Looks like this antitrust has not ended 🧐