Alibaba’s earnings and revenues surged in fiscal 1Q18
Chinese e-commerce giant Alibaba (BABA) reported its numbers for fiscal 1Q18[1. fiscal 1Q18 ended June 2017] on August 17, 2017. The company’s earnings and revenues continued to surge.
Alibaba posted a net profit of 14 billion yuan (or $2.1 billion) for the quarter, which represents a 96% increase year-over-year (or YoY). Its revenues surged 56% to 50.2 billion yuan (or $7.4 billion), easily beating Wall Street estimates.
Alibaba’s e-Commerce segment generated revenues of 43 billion yuan (or $6.4 billion), growing 58% from fiscal 1Q17. Its e-Commerce segment comprises 86% of the company’s total revenues, compared with 73% in fiscal 1Q17.
Alibaba is riding on the spending wave of China’s growing middle class. The company has garnered a huge portion of China’s online retail activity through various apps and websites such as Taobao and Tmall.
Alibaba sees growth in other areas
Alibaba’s (BABA) Cloud Computing segment grew 96% YoY to 2.4 billion yuan (or ~$360 million) in revenues while its losses narrowed to 103.0 million yuan (or $15 million). Alibaba noted that its cloud user base exceeded a million for the first time.
Plus, the company noted that its total paying customers breached the 1 million mark for the first time, compared to 577,000 in fiscal 1Q17.
Alibaba’s Digital Media and Entertainment segment saw its revenues climb 30% YoY to 4 billion yuan (or ~$600 million).
While the FANG group (Facebook, Amazon, Netflix, and Google) of stocks have attracted much of the attention this year, they have seen returns of ~20%–45%. Meanwhile, Alibaba stock soared by a whopping 86.7% year-to-date.
In comparison, Facebook (FB) has gained 45%, Amazon (AMZN) has returned 28.1%, Netflix (NFLX) has surged 34.1%, and Alphabet (GOOG) has risen 18% in the same period. Alibaba stock jumped 2.8% on August 17, 2017.