Will Alibaba stock recover in 2022 after falling by more than 50 per cent in one year? The Alibaba Group Holding Limited (BABA) share price is around $95.72 up by 3.35% over the previous day’s close. Alibaba has been the best performer on the Hang Seng Tech Index for today but is almost 20 per cent down from the levels seen in early January this year and lower by 52 per cent over 1-year period. Alibaba’s stock ticker on NYSE is BABA and on HKEX it is 9988. US stock market investors are also waiting for the company’s announcements.
Investors were keenly looking forward to Alibaba Group announcing its June Quarter 2022 Results on Thursday, August 4. Amidst the US-China tensions related to Taiwan, the investors were also eyeing Alibaba’s guidance that will take lockdown restrictions into account and the future outlook of the economy.
The e-commerce giant was expected to show a decline in revenues owing to lockdown and supply chain disruptions in April-May.
Alibaba results have been announced and after a relatively slow April and May, the company saw signs of recovery across businesses in June. The management is confident in their growth opportunities in the long term given their high-quality consumer base and the resilience of their diversified business model catering to the different demands of their customers.
Revenue remained stable year-over-year primarily due to a decline in China’s commerce segment revenue by 1% year-over-year. Income from operations saw a decrease of 19% year-over-year.
The key to BABA stock price movement in the future also depends a lot on the recent development related to Softbank. Financial Times has reported that SoftBank Group Corp. has raised as much as $22 billion in cash through the sale of prepaid forward contracts using Alibaba Group Holding Ltd. shares. This contract is a type of derivative that allows the Japanese company to raise cash immediately while retaining the possibility of holding on to the shares.
In a recent development, Irene Yun-Lien Lee, Chairman of Hysan Development Company Limited, and Albert Kong Ping Ng, former Chairman of Ernst & Young China, were appointed as independent directors to the Company’s board, effective August 4, 2022. The new appointments demonstrate the Company’s commitment to corporate governance excellence and diversity at the board level.
The company also acknowledged that it has been identified by the US Securities and Exchange Commission as a foreign company whose auditing paperwork couldn’t be fully inspected by the Public Company Accounting Oversight Board, though the company said it would work to stay listed on the New York Stock Exchange.
Alibaba Group’s mission is to make it easy to do business anywhere. The company aims to build the future infrastructure of commerce. It envisions that its customers will meet, work and live at Alibaba, and that it will be a good company that lasts for 102 years.