Chinese E-commerce Stocks Tank on Q3 Results; JD.com Only Gainer

Third quarter e-commerce results dampened last week's Singles' Day records.
Nov. 18, 2021 22:53
Chinese E-commerce Stocks Tank on Q3 Results; JD.com Only Gainer

(CapitalWatch, Nov. 18, New York) Chinese e-commerce stocks crashed across the board on Thursday with the exception of JD.com Inc. as the latest financial figures were released and pulled the economic slowdown into the spotlight.

Alibaba Group (NYSE: BABA; HKEX: 9988) ended 11% lower after the battered industry leader posted $31.1 billion in sales and a narrowed net income to $833 million in the three months through September. While revenue grew 29% year-over-year, that was significantly below analysts' expectations.

Further, in a disappointing move, the giant has slashed its full-year revenue growth outlook to up to 23% from an earlier forecast of 30% year-over-year.

Chairman and CEO Daniel Zhang said Alibaba continued investing in "domestic consumption, globalization, and cloud computing." Among highlights, Alibaba recorded an addition of 62 million consumers during the quarter, with total number of global annual active consumers reaching 1.24 billion.

But Alibaba's drop wasn't as bad as the 18% tanking of shares in Vipshop Holdings Ltd. (NYSE: VIPS). The online retailer reported a 7.5% year-over-year increase in revenue to $3.9 billion. GMV rose just 5% in the third quarter.

Net income halved to $97.5 million, or 14 cents per share, according to the report. The number of active customers, meanwhile, increased to just 43.9 million from 43.4 million a year ago, and the number of orders was nearly flat year-over-year, at 172.9 million.

VIPS stock tumbled to a 52-week low of $9.81 per share intraday before closing at $10.03 per share.

Another e-commerce giant, Pinduoduo Inc. (Nasdaq: PDD), saw its stock tumble 5%, dragged lower by its peers. The company is set to release its third quarter financial results on Nov. 26.

Meanwhile, JD.com Inc. (Nasdaq: JD; HKEX: 9618) stood out among its peers with a 6% stock jump to $88.10 per share. The company beat estimates, posting 25.5% revenue growth to $33.9 billion. Annual active customers increased 25% to 552.2 million. Net loss was $400 million, or 28 cents per share, according to the report.

Last week, China celebrated its biggest annual shopping festival, Singles' Day. While the top online retailers posted record sales once again, the pace of growth has slowed. Alibaba scored $85 billion in sales during the 11-day sales period, while JD.com's sales hit $54.6 billion.


Topics:
BABA, JD, VIPS, PDD,