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Alibaba's profits plummeted by 75%, is the e-commerce king going to decline?

author:Kobayashi viewpoint

Recently Ma Yun in Spain news rushed to the hot search, now Alibaba is not happy, Ma Yun is enjoying a blessing in Spain, especially Alibaba's 2022 fiscal year Q3 financial report shows that its profits have plummeted by 75%, which also makes people start to question whether e-commerce can still make money, is the era of e-commerce coming to an end? Or is it just that this former e-commerce king is going to decline? All along, Alibaba is undoubtedly the ceiling of China's e-commerce, with the rise of domestic e-commerce competitors, Alibaba has also begun to turn to the financial field, but what people never expected is that Alibaba has encountered a lot of resistance in the financial field, especially Alibaba's revenue began to slow down, and the net profit fell by 75% compared with the same period, which is a very difficult time for every enterprise, wanting to gain a firm foothold in the financial field, and can continue to develop in the traditional field. Then adjustments and reforms must be carried out in order to regain market confidence.

Alibaba's profits plummeted by 75%, is the e-commerce king going to decline?

To know that Alibaba has always been known as a money-making machine, many investors have chosen Alibaba to increase their wealth, but the profit plunged by 75% This is not only a huge crisis for Alibaba, but also a huge risk for these investors, so in order to stabilize investors to continue to trust Alibaba, Alibaba even uses the general environment as a shield, and always reports good news or worries, so what dilemma has Alibaba encountered, will this e-commerce king still exist in the future? In fact, from the perspective of revenue and profit, compared with the same period has dropped by as much as 86%, but the net profit attributable to shareholders has dropped by 75%, Alibaba also gave an explanation, that is, this is a commercial impairment of 25.141 billion yuan, and the result of the decline in income generated by the equity investment held, it seems that Alibaba still wants to win back the trust of market investors, otherwise it would not have been specially explained.

Alibaba's profits plummeted by 75%, is the e-commerce king going to decline?

We all know that under the epidemic environment, although the real economy is very badly damaged, but the network economy has developed better, such as everyone staying at home almost need to make online shopping, it is reasonable to say that Alibaba should develop better, but Alibaba has given a non-conforming result, in the face of such difficulties Alibaba chose to expand the scope of self-operation, in order to resist the impact of the continued weakness of the global economy, now Alibaba is not limited to domestic business, including international business, Local life services and cainiao, cloud services, digital media and entertainment and many other business sectors, while Alibaba also divides its core business into domestic business and foreign business, domestic business accounts for up to 71%, that is to say, if Alibaba wants to restore revenue growth, then the domestic market must be stabilized.

Alibaba's profits plummeted by 75%, is the e-commerce king going to decline?

However, as we all know, the rise of domestic e-commerce platforms, although Jingdong has begun to lose money again, but in the first quarter of 2022, the revenue has exceeded Alibaba, in fact, for Jingdong logistics losses to narrow year-on-year is a very normal thing, as long as the layout is slightly adjusted in the future, it is easy to turn losses into profits, but Alibaba is different, because now people's shopping habits have changed, that is, such as various program activities and offers, which have made consumers feel numb, so frequent discounts, Has made consumers feel accustomed to it, naturally they will not produce more consumption impulses, market competition and changes, to Alibaba has brought a huge test, while the continuous increase in operating costs, for Alibaba's territory is also frequently limited, such as Alibaba's support for business initiatives, so that operating costs further increase, coupled with investment in growth business, as well as the cost of user growth, are Alibaba profit plunge there are specific reasons.

Alibaba's profits plummeted by 75%, is the e-commerce king going to decline?

In fact, Alibaba from the previous overall synergy to self-financing, have reflected the market is constantly changing rapidly, no enterprise can be alone, which also means that Alibaba must seek a more stable development direction, only in this way as before to move forward, is not known whether Alibaba still has this opportunity, after all, now questioning Alibaba's revenue capabilities are getting louder and louder, while the strength of domestic competitors, but also let Alibaba lose a certain market space, In the past, a dominant situation has completely existed, and if you want to continue to develop in the future, it is not only to stabilize your core business, but also to make a breakthrough in other businesses, otherwise according to this progress, then Ma Yun said to build a century-old enterprise that can operate for at least 102 years, it may become a complete bubble, then whether this e-commerce king will go down. What do you think about that? Feel free to leave a message in the comments section.

Ali

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