Alibaba Group completed the second quarter with results that were below analysts' expectations due to high competition in the Chinese market, Kommersant reports.
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The company's net profit for the period was 24.27 billion yuan ($3.4 billion), down 29% from a year earlier and also short of analysts' forecasts of 28.18 billion yuan, according to FactSet.
Alibaba's revenue increased 3.9% to 243.2 billion yuan ($33.47 billion), but that was also below expectations of 246.4 billion yuan. Sales growth also slowed significantly from the previous quarter, when it was 6.6%.
Experts note that Alibaba's performance is negatively affected by intense competition in China, both with local trading platforms and social networks. In addition, the company suffers from a difficult economic situation in the country and weak consumer demand.
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