Alibaba shares climb after Q1 beat

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Alibaba, an all-session stock on IG, has seen its shares rise after reporting first-quarter (Q1) sales that beat the street. Can this be sustained in H2, asks IGTV's @AngelineOng.

 

Shares Alibaba Group Taobao Baidu Nvidia

 

 Angeline Ong | Financial Analyst, Presenter and Content Editor, London | Publication date: Thursday 10 August 2023 14:53

 

Alibaba shares beat predictions

China's Alibaba shares inflated after the company reported Q1 sales that beat analysts' estimates. Let's have a look at the shares for you. All sessions here on the IG platform. It shares currently trading up 3.7%.

This is after those impressive sales figures when consumer sentiment bounced back from the same time a year earlier when there were strict pandemic lockdowns. Consumer purchases on Alibaba's Taobao and two more marketplaces bounced back as well.

Taobao, Alibaba's treasure chest

Taobao, of course, is another term for treasure, and it's where people go to look for bespoke items.

QMao, very interesting enterprise there. It's where Alibaba's selling or offering the more luxury end of the marketplace and the products. They helped in part, too, thanks to a shopping festival. This is a 618, which is a key shopping event in China.

In terms of sales for the group as a whole, 234 billion yuan. That's around $32.3 billion for the quarter.

Now, what is happening in this space is many of these groups are looking at buying up chips from the likes of Nvidia because this is seen as where the whole thrust of keeping stocks and also margins high will play and also the building out of generative AI systems.

According to the F2, many companies like Alibaba have made orders worth around $5 billion. Always showing you Baidu because that's also an all second stock. Baidu, TikTok owner ByteDance, Tencent and Alibaba have all made orders as well, according to this F3 report.

Global growth uncertain

So, where is the salad dressing? As global growth looks still shaky and the likes of Maersk and also Hugo Boss, Heineken and Black+Decker, included in that loss as well, have complained about destocking, which hurt their previous quality performance.

Many companies like Alibaba, like Baidu are looking to AI and new technology to solve this issue.

The question, so where is the salad dressing? The question is, can new technology help companies like Alibaba in the second half become more nimble when it comes to stocking and restocking to ensure that they're not behind the curve, whichever way the economy goes?