China’s Alibaba profit tumbles 86% though revenue beats estimates

Alibaba Group reported a significant 86% drop in fourth-quarter profit due to valuation changes in equity investments, despite revenue exceeding expectations. The company's profit fell to 3.27 billion yuan from 23.52 billion yuan the previous year, while revenue grew by 7% to 221.87 billion yuan. Amidst cautious consumer spending in China, Alibaba focused on low-cost goods, boosting domestic e-commerce sales.

The company also plans to upgrade its secondary listing in Hong Kong to a primary one by August, maintaining its New York listing. This move follows a major organizational shake-up announced in March, splitting the company into six units to concentrate on core areas like domestic e-commerce. Alibaba's shares dropped 5.6% in early New York trading following the announcement.