Shares of Alibaba (NYSE: BABA) are soaring today despite its fiscal Q2 top line missing the cut.
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Revenues at $29.1 billion rose 3% year-over-year but missed the Street’s estimates by $490 million.
Adjusted earnings came in at $1.82 per ADS for the Chinese e-commerce giant, an increase of 15% year-over-year surpassing analysts’ estimates of $1.69 per share.
Toby Xu, CFO of Alibaba Group commented, “We have continued to take a holistic approach to improve operating efficiency and cost optimization throughout the company that resulted in adjusted EBITA growth of 29% year-over-year. With strong net cash position and cash flow generation, as of November 16, 2022, we had repurchased approximately US$18 billion of our shares under our existing US$25 billion share repurchase program.”
Xu added that the company’s Board of Directors has approved to bump up its stock buyback program “by another US$15 billion and extend the program to the end of fiscal year 2025.”
