Alibaba Feels the Squeezed From China’s Slowing Economic Growth
China’s biggest e-commerce company is expecting rockier times ahead, a troubling sign for a vast economy that is one of the world’s most important engines of growth.
The flagging pace of economic expansion in China and the country’s trade war with the United States led the Alibaba Group to cut its estimate of revenue growth for the current year, which ends in March, by around 5 percent, the shopping giant said on Friday. For the quarter that ended in September, revenue came in at $12.4 billion, a 54 percent increase from a year earlier but less than analysts had expected.
“The global economy is in a state of uncertainty,” Daniel Zhang, Alibaba’s chief executive, said in a conference call with analysts. “The U.S.-China trade tensions create increased risk of instability.”
The decision to lower sales expectations was made only recently, the company’s chief financial officer, Maggie Wu, said. Economic conditions deteriorated noticeably in just the past month, she said. “Merchants are facing challenging times,”