Alibaba (HKG: 9988) / (NYSE: BABA) reached a 52-week low of US$58.01 in October 2022 before rebounding to US$124 in January 2023 after China announced its reopening and sentiments improved from the end of the regulatory crack down. The announcement of Jack Ma ceding control of Ant Group was also viewed as a key move aimed at pleasing regulators.
Charlie Munger said it was his worst investing mistake as he overestimated Alibaba’s future earnings potential while Michael Burry of The Big Short recently disclosed that he took a position in Alibaba.
We previously shared
five reasons why we thought Alibaba was finally on a bull run. We now review Alibaba’s 3QFY23’s results to understand Alibaba’s latest position and comment whether Munger or Burry will have the last laugh.
Summary financial results
| P&L in RMB’m |
Dec’22 |
Dec’21 |
Sep’22 |
YTDFY23 |
YTD FY22 |
Variance (%) |
Variance (%) |
| EPS in RMB’$ |
|
|
|
|
|
Dec’22 vs Dec’21 |
YTD FY23 vs YTD FY22 |
| Revenue |
247,756 |
242,580 |
207,176 |
660,487 |
649,010 |
2 |
2 |
| Income (loss) from operations |
35,061 |
7,068 |
25,137 |
85,111 |
52,921 |
396 |
61 |
| Adjusted EBITDA |
59,162 |
51,364 |
43,311 |
143,587 |
134,832 |
15 |
6 |
| Adjusted |
...
