Alibaba Group Holding Ltd for the first time in two years reported revenues that missed estimates. Revenues for Q2 climbed to CNY 205.7bn ($31.8bn), missing estimates of CNY 209.4bn ($32.4bn), though it was higher than the $23.7bn in 2Q2020. Net income was at CNY 45.1bn ($6.9bn), vs $7.37bn in 2Q2020. The company announced a slowdown in growth of its major divisions from cloud to e-commerce. This reduction comes from concerns that the new government regulations are constraining expansion and increasing obstacles to companies. Alibaba announced Tuesday it was boosting its share buyback program by 50% to $15bn. Alibaba in May, forecasted revenue growth of at least 30% for the 12 months ending in March, but it decreased 41% YoY. That prediction suggests that Alibaba’s share of Chinese e-commerce sales will fall below 50% for the first time ever in 2021, according to industry researcher eMarketer in a July 30 report.
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