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Alibaba Q2 Earnings: What To Expect From The Amazon of China

As earnings season begins to ramp up and Chinese regulators continue to crack down on domestic firms, can Alibaba deliver a strong quarter?

It’s been a tough few weeks for Chinese stocks as the Asian powerhouse’s regulators continue to crack down on its own conglomerates. Last week, Chinese stocks spiraled into the red across the board after the Chinese government implemented a host of harsh regulatory measures in a bid to curb antitrust breaches. 

Now, with one of China’s biggest names, Alibaba (NYSE: BABA), set to report its Q2 earnings, are investors in for a win, or more pain? 

When is Alibaba’s earnings date? 

Alibaba will report its earnings for the second quarter of 2021 on Tuesday, 3 August at 7:30 AM U.S. EST. 

How can I listen to Alibaba’s earnings call? 

To listen to the call and to access the transcript, as well as the shareholder’s letter and the financial statements for the quarter, all you need to do is go to Alibaba’s investor relations page and find the Q2 Earnings Call event

What to expect from Alibaba’s Q2 earnings

Over the past 12 months, Alibaba’s share price has dropped more than 20% from $256 per share to roughly $200 per share, as of August 2 at market close. Volatility amongst Chinese stocks, increased government interference in China, and general uncertainty about the company in such an environment, have all led to widespread sell-offs. 

The average analyst consensus for Alibaba calls for earnings per share (EPS) of $2.21 on revenue of $32.3 billion, but there has been a drove of reduced forecasts in recent weeks due to the aforementioned troubles. 

A lot of investors will be watching to see how its gross merchandising volume has fared in a largely reopened China, with COVID-19 accelerating the spread of e-commerce in 2020. On top of this, it’s important to watch out for the company’s other bets such as cloud computing, which is continuing to grow in the hopes of challenging Amazon Web Services. 

For now, the main thing investors will want is for Alibaba to stay above the psychological barrier of its $200 price tag, having spent some time below it.

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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here