- Kristopher Fraser |
Alibaba was well on its way to continuing its upward trajectory of being an e-commerce behemoth...that was until the coronavirus struck. The company has warned of a drop in revenues as the coronavirus continues to affect China hitting supply chains and deliveries.
The warning took place during a December 2019 end of quarter earnings call right after the company saw success with its Singles' Day shopping event which brought in record revenues. To date, the coronavirus has killed 1350 people and infected thousands more.
The company is also experiencing limited delivery capacity due to the coronavirus. Many restaurants in China have shut down. Any Alibaba businesses relying on physical sales are expected to decline this quarter.
Chinese citizens are slowly returning back to work and logistics networks are returning back to regular operations. Alibaba has affirmed that their business is strong enough to survive a brief downturn, and the demand for their products and services hasn't waned, given the strong Q3 results they reported.