Alibaba Group Holding reported a 28 per cent year-on-year drop in net income for the quarter ended December yesterday, due to an increase in share-based compensation expenses and tax expenses.
Its shares fell 10 per cent in early trading in New York yesterday, extending a 4.4 per cent decline on Wednesday.
The mainland's largest e-commerce firm said net income in the quarter was 5.98 billion yuan (HK$7.41 billion), compared with 8.36 billion yuan in the same quarter a year earlier.
Revenue rose 40 per cent to 26.2 billion yuan.
Analysts polled by Bloomberg had expected net income to increase 6.8 per cent to 8.8 billion yuan.
Alibaba executive vice-chairman Joe Tsai said he was optimistic about the current quarter, with the Lunar New Year next month likely to see gross merchandise volume (GMV) continue to grow, "especially in low-tier cities".
Tang Jia, an analyst at research firm Analysys International, said the expenses that affected the company last quarter would continue to affect Alibaba this quarter.
