Alibaba, China's e-commerce giant, is beginning to feel the heat as the economy of the country travels on an uneven road. In fact, the ecommerce company had to reduce the revenue growth estimate for the current fiscal year by 5% due to the weak pace of the country's economic situation as well as the ongoing trade war with the US.
For the current quarter, the e-commerce company has earned 54% more revenue than last year. However, analysts expected the company to earn more than $ 12.4 billion, earnings for the quarter ended in September.
Alielba Chief Executive, Daniel Zhang, said the global economy is not a steady state, and the growing tensions of the US-China trade warfare are fueling the same exponential pace.
Maggie Wu, Chief Financial Officer of the company, also said the decision to exhaust sales expectations was taken last month, as the company's financial situation witnessed the downfall. In fact, traders are also facing difficult times, which have contributed to the decision.
China was proud to have been the owner of the world's second-largest economy after the United States. However, the country is witnessing a sharp fall in the regime, as trade warms up. Also, the reduced value of Alibaba's sales outlook clearly states that the serious state of the economy, which is depleted every day.
In the last quarter, the increase in economic output was 6.5% over the previous year, the smallest figure in the last decade. This clearly shows that the various other parts of the economy are affected by the growing middle class.