Alibaba misses forecasts, approves cloud spinoff

STORY: Alibaba warehouses have been busy - but not quite as busy as some expected.

On Thursday (May 19) the Chinese e-commerce giant said quarterly revenue rose 2% to just over $30 billion.

That was less than analysts expected.

Chinese consumer spending has regained some momentum since the country ended strict lockdowns.

But economists say demand remains very muted amid a wobbly recovery.

The company is also grappling with mounting competition from new competitors such as the Chinese version of TikTok.

Earlier this year, Alibaba said it would restructure into six units, with each one expected to go public.

On Thursday it said the Cloud Intelligence Group would complete a spinoff within 12 months.

It’s also looking at doing share sales for divisions including the logistics unit.

Reuters sources have said that arm could aim to raise $2 billion in a Hong Kong IPO.

The company’s digital commerce group has also begun the process of seeking external funding.