Alibaba Group Holding Limited (NYSE:BABA) stock is trading lower Monday in line with Chinese ETFs IShares China Large-Cap ETF (NYSE: FXI), KraneShares Trust KraneShares CSI China Internet ETF (NYSE: KWEB) and IShares MSCI China ETF (NASDAQ: MCHI).
China’s broader sector remains agitated amid more government transparency regarding reforms to boost the economy after the intense regulatory crackdown and pandemic restrictions fueled by U.S.’s latest sanctions on artificial intelligence technology.
Also Read: US’s AI Sanctions Hamper Alibaba’s Ambitions
Last week Alibaba surprised the Street with a first-quarter FY23 revenue growth of 14% year-on-year to $32.29 billion, beating the consensus of $31.20 billion. Non-GAAP earnings per ADS of $2.40 beat the consensus of $2.02.
Alibaba’s net profit jumped over 50%. However, the company acknowledged the AI chips crisis hampering its ambitions.
The AI chip embargos forced Chinese companies to order in bulk.
Price Action: BABA shares traded lower by 1.59% at $94.20 premarket on the last check Monday.
Photo via Wikimedia Commons
