Alibaba's Stock Declines Following Disappointing Quarterly Results

Alibaba's recent quarterly earnings report fell short of expectations, leading to a decline in its stock price. According to Ming Pao, the company's shares dropped by 7% to a low of 122.4 HKD, closing at 123.7 HKD, a 6% decrease. JPMorgan noted that while Alibaba's revenue performance was acceptable, its profits were notably disappointing. The profitability across various business segments declined, indicating higher-than-expected cost pressures. As a result, the market is expected to lower its profit forecasts for the company. Despite these challenges, JPMorgan maintained an 'overweight' rating on Alibaba but reduced its target price by 5% to 200 HKD.