Alibaba Profit Lags Estimates on Tax as Sales Defy Slowdown
- Chinese e-commerce giant authorizes a $6 billion share buyback
- Online consumption bucked the Chinese economy’s deceleration
Costs Bite Into Alibaba's Margins
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Alibaba Group Holding Ltd.’s earnings lagged estimates after it swallowed a higher tax bill and splurged on the entertainment and cloud computing businesses that are fueling revenue growth. The shares dropped the most in almost a year.
China’s biggest e-commerce company posted adjusted earnings-per-share of 4.35 yuan, missing the 4.51 yuan average of estimates compiled by Bloomberg. That came even as revenue rose at a faster-than-expected 60 percent to 38.6 billion yuan ($5.6 billion).