Shares in the Chinese tech and e-commerce giant jumped more than 6% in New York premarket trading on Thursday. Its shares in Hong Kong closed up 5.2% earlier.
The popularity came despite the company reporting nearly 205.6 billion yuan (about $30.4 billion) in revenue for the quarter ended June, roughly in line with what was recorded at the same time last year. .
But it beat analysts’ forecasts, and net income also beat expectations at 22.7 billion yuan ($3.4 billion).
The company said its retail sales plummeted in April and May, especially as Shanghai and other major Chinese cities faced devastating pandemic restrictions that have sapped consumer demand and created logistical nightmares.
But business has rebounded since June, especially “as the logistics and supply chain situation gradually improved following the easing of Covid restrictions,” CEO Daniel Zhang said.
Although growth has all but stalled, Zhang tried to improve on recent results, noting that the company has weathered “mild economic conditions” to “ensure stable earnings.”
However, he warned that the road ahead was rocky, pointing to broader economic risks.
“External uncertainty, including but not limited to international geopolitical dynamics, the resurgence of Covid, China’s macroeconomic policies and social trends, is beyond what we as a company can influence,” Zhang told analysts.
“The only thing we can do at the moment is focus on improving ourselves,” he said, adding that Alibaba has focused on cutting losses for businesses such as supermarkets and food delivery units.
Alibaba has long had a primary listing in New York, where its shares are trading after a massive IPO in 2014.
It comes just as one of Alibaba’s biggest longtime backers is stepping back.
SoftBank did not immediately respond to a request for comment.
