BABA Shares stalled once again in their efforts to break back above the IPO price of $68. Following a Citi tech conference which reportedly saw Alibaba investor relations talking down their numbers, BABA has plunged over 6%.
- *ALIBABA WILL HAVE ‘TOUGH COMPS’ IN 3Q: CITI CONF
As Bloomberg reports, Alibaba faces tough comps this quartrr in other revenue category due to anniversarying of some items.
From BABA's Jane Penner, head of IR:
"given the stable trends in Chinese wage growth, job creation and household net assets, we believe that consumers still have the ability and willingness to spend. That said we are observing some negative impact on the magnitude of the spending; we believe this is more due to the psychology than the inability to spend; We are seeing lower average order value for example; we believe our Sept quarter GMV will be mid-single digits lower than our initial expectations."
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