Alibaba Group Holding Ltd (NYSE: BABA)
Alibaba reported better-than-anticipated fiscal third-quarter earnings on Wednesday, though revenue fell short of estimates. Worsening performance in the entertainment sector of the China-based online retail giant weighed on growth during the quarter, with losses surpassing $890 million.
Alibaba said its business grew by only 27% on Singles Day, which is China’s equivalent of Black Friday. The earnings report came a day after several companies operating in China sounded warning bells over Asia’s largest economy.
As of 12:48 p.m. on Wednesday, Alibaba shares traded in ADR form on the NYSE, were up $7.02, or 4.47% to $163.90 apiece.
Alibaba posted earnings of $1.77 per share for its fiscal third quarter of the year, compared with earnings of $1.53 per share in the same period a year ago. Analysts expected the online retailer to report adjusted earnings of $1.67 per share, based on figures compiled by Refinitiv.
Companywide revenue came to $17.06 billion, up333334 41% from the same time last year, and below Wall Street estimates of $17.7 billion. Revenue from its core commerce business was RMB102.84 billion, up 40% from the earlier-year period.
Meanwhile, digital media and entertainment brought in revenue of RMB6.49 billion, while revenue from cloud computing operations totaled RMB6.61 billion, up 84% year-over-year. Mobile monthly active users climbed from 666 million in the second-quarter, to 699 million in the latest-quarter.
Alibaba CEO Comments
“Alibaba had another strong quarter. Our resilient operating and financial performance is a direct reflection of our persistent focus on better serving our growing base of nearly 700 million consumers across retail, digital entertainment and local consumer services,” said Daniel Zhang, Chief Executive Officer of Alibaba Group. “Our growth is also driven by the power of Alibaba’s cloud and data technology that helps expedite the digital transformation of millions of enterprises.”
Alibaba Group Holding Ltd. Profile
Alibaba Group Holding Ltd. engages in providing online and mobile marketplaces in retail and wholesale trade. It operates through the following segments: Core Commerce; Cloud Computing; Digital Media and Entertainment; and Innovation Initiatives and Others. The Core Commerce segment comprises of platforms operating in retail and wholesale.
The Cloud Computing segment consists of Alibaba Cloud, which offers elastic computing, database, storage and content delivery network, large scale computing, security, management and application, big data analytics, a machine learning platform, and other services provide for enterprises of different sizes across various industries.
The Digital Media and Entertainment segment relates to the Youko Tudou and UC Browser business. The Innovation Initiatives and Others segment includes businesses such as AutoNavi, DingTalk, Tmall Genie, and others. The company was founded by Chung Tsai and Yun Ma on June 28, 1999 and is headquartered in Hangzhou, China. – CNN Money