Yahoo Shares Fall on Alibaba’s Revised Q1 Results
Alibaba filed a revised F-1 showing first-quarter results that disappointed many on Wall Street ahead of its highly anticipated IPO later this year. Yahoo (NASDAQ:YHOO) shares fell 5.7 percent as it reacted to the bad news, which brings up the question if we’re looking at a scenario similar to Sina (NASDAQ:SINA) performance prior to the Weibo (NASDAQ:WB) IPO.
What happened to Alibaba?
Let’s get one thing straight: Alibaba is still growing fast. In the company’s quarter ending March 31, the Chinese e-commerce giant reported gross merchandise volume of $69.1 billion and revenue of $1.93 billion, which represented year-over-year growth of 46 percent and 39 percent, respectively.
The problem is that Alibaba finished its fiscal year ending March 31 with total revenue growth of 52 percent, representing a fairly significant slowdown to end its fiscal year. As a result, growth concerns are now starting to rise, and with an IPO just a couple of months away, it couldn’t be at a worse time.