Alibaba shares will benefit after earning the case over expectations

by

Shares of the U.S. listing of Alibaba Group Holding Ltd. into pre-sale trading on Tuesday after the Chinese e-commerce giant exceeded sales expectations for its latest quarter and showed a growing profit path.

The company reported net revenue of RMB79.43 billion ($ 12.17 billion), or RMB28.85 a share, up from RMB52.31 billion, or RMB19.55 a share, in the prior year period. On a modified basis, Alibaba BABA,
+ 4.28%
earned RMB22.03 a share, compared to RMB18.19 a year earlier. Analysts conducted by FactSet expected RMB20.71 in adjusted earnings per share.

Alibaba’s revenue for the third fiscal quarter came in at RMB221.08 billion, up from RMB161.46 billion a year before and above the FactSet consensus which demanded RMB214.293 billion.

Shares of Alibaba listed in the US rose 0.4% in pre-sale trading.

Revenue for Alibaba’s main trading segment, which includes its Tmall and Taobao markets, rose to RMB195.54 billion from RMB141.48 billion, while analysts had been look for RMB187.74 billion. The division benefited from Alibaba’s 11.11 shopping festival, the biggest event of the year, in which wholesale volume rose 26% compared to last year’s event.

Overall for the quarter, Tmall’s total trading volume for online physical goods grew 19% from a year earlier, excluding outstanding orders. Alibaba noted “rapid” growth in the home furniture sectors as well as accelerating growth in consumer electronics. The company also said Taobao’s wholesale sales for online corporate products were “strong. ”

Alibaba reported 779 million annual active customers since the fourth of December, as well as 902 million mobile monthly active users.

The company’s cloud industry saw revenue grow to RMB16.12 billion from RMB10.72 billion, while analysts had modeled RMB16.69 billion. Alibaba reported “strong growth in customer revenue in the internet and retail industries and the public sector,” according to the news release.

Shares of Alibaba have lost 14.9% over the past three months as KraneShares internet CSI China ETF KWEB,
+ 4.57%
up 25% and like the S&P 500 SPX,
+ 1.61%
increased 14%.

.Source