Alibaba Group (BABA.US) ADR fell more than 5% in pre-market after the Chinese e-commerce giant posted weak second quarter sales figures amid slowing consumption in the country and Beijing's broader crackdown on the tech sector. Net income plummeted 81% to 5.37 billion yuan ($833 million) from 28.77 billion yuan reported last year. Company is attributing the drop in profit from a year ago to a decline in the value of its equity investments. Revenue rose 29% to 200.69 billion yuan ($31.44 billion) while analysts on an average had expected revenue of 204.93 billion yuan ($32 billion), according to Refinitiv data. Revenues from its growing cloud division, however, rose 4.5% to just over 20 billion yuan.
Alibaba Group (BABA.US) stock bounced off the long-term downward trendline recently and downward move continues today. Stock plunged over 5% in premarket and if current sentiment prevails, next target for sellers is located at $130.54 where January 2019 lows are located. Source: xStation5
