Alibaba has not achieved forecast revenues last quarter, as strong growth in its cloud division could not compensate for disappointing results in its e-commerce activities. The latter suffers from competition from rivals like Temu.
Consumer confidence remains in crisis
The Chinese group remained well well below market expectations of 252.92 billion yuan (32.3 billion euros), with its actual revenue of 247.65 billion yuan (31.6 billion euros). Consumer confidence in China remains very low due to the ongoing real estate crisis, stagnating wages and geopolitical tensions. The company also faces fierce competition from rivals such as PDD (Temu’s parent company) and Meituan.
