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What a bad week 😮‍💨

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 🧐

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