Alibaba earnings report highlight attractive reversal story

Alibaba Group’s first-quarter results beat Wall Street’s expectations after the platform company cut costs during a resurgence of the coronavirus pandemic across China.

US listed shares of the Chinese Alibaba fell in half over the past year, though analysts saw encouraging trends in latest earnings report that could help change the bitter narrative.

Alibaba Group Holding Ltd.’s shares looked to be giving back their post-earnings gains in Friday trading, but analysts generally had praise for the Chinese e-commerce giant’s latest results.

The company reported essentially flat revenue growth for its June quarter on Thursday morning, while signaling an improvement in business trends as the period wore on as well as progress in efforts to rein in expenses. Alibaba’s US-listed shares BABA gained 1.8% in Thursday’s session, though they were off 4.2% in Friday morning action.