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Alibaba has faced growth challenges amid regulatory tightening on China’s domestic technology sector and a slowdown in the world’s second-largest economy. But analysts think the e-commerce giant’s growth could pick up through the rest of 2022.
Kuang Da | Jiemian News | VCG | Getty Images

Alibaba reported fiscal first-quarter earnings on Thursday that beat expectations, sending shares higher in U.S. pre-market trade.

Shares of the Chinese e-commerce giant in Hong Kong rose more than 4% ahead of the earnings report. Alibaba’s U.S.-listed shares were 7% higher.

Here’s how Alibaba did in its fiscal first quarter, versus Refinitiv consensus estimates: 

  • Revenue: 205.55 billion Chinese yuan ($30.68 billion) vs 203.19 billion yuan expected, remaining flat year-on-year
  • Earnings per American depositary share (ADS): 11.73 Chinese yuan vs 10.39 yuan expected, down 29% year-on-year
  • Net income: 22.73 billion yuan vs 18.72 billion yuan expected

In the quarter, Alibaba faced a number of headwinds including a resurgence of Covid in China that led to major cities, such as the financial metropolis of Shanghai, being locked down. That led to a sluggish Chinese economy in the second quarter of the year.

Meanwhile, the e-commerce giant continues to face a strict regulatory environment after Beijing’s more than a year-and-a-half crackdown on the domestic technology sector.

While Alibaba had a tough quarter, analysts are expecting growth to pick up in the coming months.

This is breaking news. Please check back for updates.

This article was originally published by Cnbc.com. Read the original article here.