Deals
Jack Ma's Free Spending Ways Are Spooking Alibaba Investors
- Giant may see a rare profit slump as revenue growth slows
- Alibaba and Tencent are spending billions in multiple arenas
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Jack Ma’s shopping spree is starting to weigh on Alibaba’s bottom line just as profit and revenue growth ease. And investors have shaved about $60 billion off its market value to voice their displeasure.
Alibaba Group Holding Ltd. is projected to post its first decline in profit in a year and a half -- the result of folding in major loss-making businesses and heightened spending to fend off a charge by Tencent Holdings Ltd. into retail and payments -- traditionally its turf. While revenue is expected to climb 53 percent to 59 billion yuan ($9.3 billion), that would actually be its smallest gain in seven quarters.