Gross merchandise volume in 2Q15
Alibaba’s (BABA) gross merchandise volume (or GMV) grew by 34% year-over-year (or YoY) across its China marketplaces. This is a decline of 5% compared to the growth of 39% in the quarter ending March 2015. As shown the below chart, Alibaba’s GMV has been trailing off in the last few quarters.
On the contrary, Amazon (AMZN) saw a 20% increase in its third-party sales in 2Q15. On the other hand, eBay (EBAY) reported a 2% decline in its Marketplaces GMV due to the impact of a strong dollar on its 2Q15 results.
Although Alibaba witnessed a slowdown in its active buyers and GMV, the revenue for its cloud computing and Internet infrastructure business saw a growth of 106% YoY to $757 million in fiscal 1Q16.
Aliyun challenges Amazon Web Services
Alibaba plans to invest a whopping $1 billion in its cloud-computing arm Aliyun in order to challenge the popular Amazon Web Services (or AWS). The objective is to leverage the global cloud computing market worth ~$20 billion, as estimated by analysts.
Alibaba has announced its plans to open new Aliyun data centers in the Middle East, Singapore, Japan, and Europe (EFA). Alibaba also plans to form partnerships with telecom and enterprise technology providers, including Intel (INTC) and Singapore Telecommunications.