Alibaba's Declining Earnings Growth and Low Returns Raise Concerns Over Capital Allocation

Alibaba's stock is down 5.3% over the past week, leading to questions about the company's financials and ROE.
ROE measures how efficiently a company generates profits relative to equity. Alibaba's ROE is low at 6.8%.
Despite reinvesting profits, Alibaba's earnings have declined over the past 5 years while the industry grew.
The low ROE and declining earnings growth suggest poor capital allocation by Alibaba.
Analysts forecast Alibaba's earnings growth to improve significantly, but it remains to be seen if this happens.

yahoo.com

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