Alibaba’s Q1 FY 2025 Outlook: Weak Growth and Competitive Pressures
China slowdown weighs on Alibaba
Alibaba reports earnings on 15 August. It is expected to see earnings per share rise to $2.12 from $1.41 in the previous quarter, while revenue is forecast to rise to $34.71 billion, from $30.92 billion in the final quarter (Q4) of fiscal year 2024 (FY24).
China’s economic growth has been sluggish, with gross domestic product (GDP) rising just 4.7% in the quarter ending in June, down from 5.3% in the previous quarter. This slowdown is due to a downturn in the real estate market and a slow recovery from Covid-19 lockdowns that ended over a year ago. Moreover, consumer spending and domestic consumption remain weak, with retail sales falling to an 18-month low due to deflation.
