, Columnist
China’s Coronavirus Is Bringing Alibaba to Its Knees
Growth at its biggest division was already sliding. This could be a knockout blow.
Alibaba executives are framing the virus outbreak as a one-off event.
Photographer: Qilai Shen/Bloomberg
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Investors looking at Alibaba Group Holding Ltd. earnings on Thursday are rightfully examining the March quarter outlook and parsing every word for clues about how the coronavirus outbreak will impact the Chinese company. It’s not pretty.
Chief Financial Officer Maggie Wu told investors that the company’s China retail and local consumer businesses would be hit hardest. Both will bear the brunt of reduced demand and the challenge of delivering products. Customer management revenue and commissions will most likely decline, she said.
This is a huge revelation.