KWEB - Alibaba gains after Q4 results cloud spin-off but Chinese tech stocks sink

2023-05-18 08:14:55 ET

Alibaba's ( NYSE: BABA ) announcements of better-than-expected fourth-quarter results and spin-off of its cloud group were not enough to keep most Chinese tech stocks from moving lower on Thursday.

Alibaba ( BABA ) shares rose 1% after the company reported an adjusted $1.56 per share on $30.32B in revenue, topping expectations of $1.35 per share and $29.91B in sales.

Chairman and CEO Daniel Zhang said the company's board approved a full spin-off of the Cloud Intelligence Group to shareholders, with it eventually becoming an independent publicly listed company.

Despite the news, shares of other Chinese tech stocks were largely lower, including Baidu ( BIDU ), Pinduoduo ( PDD ) and JD.com ( JD ).

Smaller Chinese tech stocks such as Bilibilii ( BILI ), Kingsoft Cloud Holdings ( KC ) and NetEase ( NTES ) were mixed, as Bilibili and NetEase rose, while KingSoft dipped.

The KraneShares CSI China Internet ETF ( KWEB ) was also slightly lower in pre-market trading.

In March, Alibaba ( BABA ) said it would split into six different units with a goal of boosting each group's individual business value, including its Taobao Tmall Business.

More on Chinese tech stocks

• Daniel Loeb's Third Point amasses new stakes in Alphabet, Micron, AMD, Alibaba
• Chinese tech stocks slip as US watchdog finds 'unacceptable' problems with audits
• Chinese Internet stocks rise on slate of J.P. Morgan upgrades

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