Chinese e-commerce giant Alibaba Group Holding (NYSE:BABA) missed analyst estimates for its fiscal first-quarter revenue as its e-commerce business was hurt by rising competition from smaller players such as JD.com (NASDAQ:JD) and Pinduoduo.
Alibaba’s results mirror those of e-commerce giant Amazon in the U.S., as the easing of pandemic-related restrictions has led to more consumers visiting physical stores rather than shopping online.
Overall, revenue for Alibaba rose 34% to $31.83 billion U.S. in its first quarter ended June 30, below estimates of $32.34 billion U.S., according to Refinitiv data. Net income attributable to shareholders rose to $6.96 billion U.S. compared with $7.36 billion U.S. a year earlier.
Ant Group, the fintech affiliate of Alibaba Group, recorded a profit of $2.09 billion U.S. in the quarter, according to the Chinese e-commerce giant.
The results come amid an ongoing Chinese regulatory crackdown on industry, during which Alibaba has been one of the main targets.
Late last year, regulators halted a planned $37-billion U.S. initial public offering (IPO) of Ant Group in Shanghai and subsequently called for a restructuring of the financial unit.
This past April, China’s anti-monopoly regulator fined Alibaba $2.75 billion U.S. for engaging in what it called “anti-competitive practices.”
Alibaba’s stock is down 12% year to date at $200 U.S. per share.