Alibaba (BABA. N) cut its annual revenue forecast on Friday amid fears that the Sino-US trade dispute might hit the economy. The company expects trade conflicts to curb its revenue before the peak season.
The company said it would reduce its annual revenue forecast to 375 billion to 383 billion yuan ($544-55.6 billion), or 4-6%, and its core business grew at its slowest rate since 2016 in September. Alibaba is the highest listed company in Asia.
In a conference call with analysts on Friday, executives said that the purchase of high-unit-price products could be affected by economic uncertainty, and they would delay measures to increase profits in some parts of the online mall to encourage businesses to stay on the platform.
The company's U.S. -listed shares fell 2.4% on Friday to close at $147.59, down more than 14% this year.
At this point, Alibaba's shopping platform will soon usher in the "double 11" Shopping Festival in November 11th. Last year, the company received more than $25 billion in revenue this day.
Analysts say trade tensions and the impact of tighter regulation in China will continue to suppress the company's share price for some time.
Despite weak estimates, Alibaba's net profit attributable to its common shareholders grew by 13% to 2.03 billion yuan, or 678 yuan per share.
Beyond business, Alibaba's cloud computing revenue grew by 90.5% to 5.67 billion yuan, while its entertainment and digital media revenue grew by 24% to 5.94 billion yuan.
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