(Bloomberg) — Alibaba Group Holding Ltd. unveiled an additional $25 billion to its stock repurchase program as it reported disappointing revenue, showing how rivals such as PDD Holdings Inc. are undermining its dominance in China.
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The Hangzhou-based group, which intends to split its major business lines into independent units, reported a 5% rise in December quarter sales to 260.3 billion yuan ($36.2 billion), beating analysts’ estimates. was approximately 261 billion yuan. Net income fell sharply to 14.4 billion yuan in the period.
Alibaba gained more than 5% in pre-market trading in New York after the company said its board approved a new share buyback. That helped ease concerns about the performance of the online shopping leader — a barometer of Chinese consumer demand, which is struggling to fend off new rivals from PWD to ByteDance Ltd. Disappointing sales have created more uncertainty over a restructuring that would split the group into several parts. An overhaul designed to revive growth at a national icon, including cloud and logistics.
Alibaba is trying to stage a comeback after years of brutal government punishment and strategic mistakes that cost the e-commerce operator its place as the leader of the country’s tech industry. In November co-founder Jack Ma urged the company to correct its course.
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Chief Executive Officer Eddie Wu and Chairman Joseph Tsai, two of Ma’s longtime confidants, took over the reins after former chief Daniel Zhang abruptly stepped down, and are now accused of influencing the complex multi-way division Has gone. The ultimate goal is to beat back upstarts like ByteDance’s Douyin and PDD, while carving out a new path for Alibaba to become a major player in the field of artificial…