HK Stock Market Move | BABA-W (09988) falls more than 2% in trading, stock price hits its lowest level in nearly two months. Institutions point out that its second quarter performance is not surprising.

BABA-W (09988) fell more than 2% during trading, with the stock price hitting a near two-month low. As of the time of writing, it fell 1.55% to HK$85.85, with a trading volume of HK$47.56 billion. On the news front, Alibaba's financial report for the second quarter of the 2025 fiscal year (July-September 2024) showed a revenue of 236.503 billion yuan, a 5% year-on-year increase; Non-GAAP net profit was 36.5 billion yuan, a 9% year-on-year decrease, with a Non-GAAP net profit margin of 15%; Adjusted EBITA decreased by 5% year-on-year to 40.6 billion yuan, with an adjusted EBITA profit margin decreasing by 2 percentage points, mainly due to increased investment in domestic e-commerce business. A Goldman Sachs research report stated that Alibaba's quarterly performance was weak, but overall in line with expectations. The slight negative reaction in the stock price was mainly due to Taobao-Tmall's GMV growth falling below expectations, and the quarter-on-quarter decline in Taobao-Tmall's EBITA and group EBITA widening. However, Alibaba's management is relatively optimistic about the guidance for the third quarter, so Goldman Sachs expects Alibaba's CMR growth in the third and fourth quarters to accelerate to 5.4% and 6.2%, respectively, up from previous predictions of 4.6% and 5.7%. Daiwa Securities mentioned that although the gap between Alibaba's customer management revenue (CMR) and GMV is narrowing, there were no major surprises in the second quarter performance, and expectations are for the growth pace of CMR and GMV to gradually improve.