How Alibaba Continues to Impress
Alibaba had another spectacular quarter
Chinese e-commerce giant Alibaba (BABA) reported its fiscal 2Q18 (quarter ended September 2017) earnings on Thursday, November 2, 2017. The company had another stellar quarter, beating earnings and revenue estimates.
Alibaba generated revenue of 55.1 billion yuan, or ~$8.2 billion, a whopping 61% rise from the same quarter last year and higher than analysts’ expectation of 52.2 billion yuan. The company’s net income rose 132% YoY (year-over-year), reaching 17.7 billion yuan, or ~$2.7 billion.
The company’s revenue growth was driven by its core e-commerce business, which rose 63% YoY to 46.5 billion yuan, or ~$7.0 billion, since Chinese consumers are seeing rising incomes. Alibaba’s Taobao and Tmall websites are the most popular e-retail sites in China (MCHI).
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Alibaba’s non-core areas are also seeing stellar growth
Alibaba also saw impressive growth in other areas. Alibaba Cloud, the company’s cloud computing business, saw its revenue almost double YoY to 3 billion yuan, or ~$450 million. The cloud business brought in 2.4 billion yuan in fiscal 1Q18, which suggests that the segment is growing quickly.
Alibaba’s revenue from abroad rose 115% YoY to 2.9 billion yuan, or ~$435 million. The company is aggressively investing to increase its global presence. Alibaba stock has soared a staggering 112.4% year-to-date on the back of strong earnings growth throughout the year.