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Alibaba beats estimates as pandemic fuels online

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HomeLatest Platform NewsComputing PlatformsAlibaba beats estimates as pandemic fuels online

Alibaba Group beat quarterly revenue and profit estimates, as its e-commerce and cloud computing companies continued to grow after China’s emergence in the coronavirus lockdown.

Sales from the trade business alone jumped 34 percent to 133.32 billion yuan (approximately $19.27 billion) in the quarter ending in June, slightly slower compared to a year before but still sufficient to prod its stocks higher after the results.

The corporation’s stock has surged 23% this year as investors worldwide poured money into tech companies seen as “stay-at-home” winners from the pandemic, and Alibaba stated it had bounced back from a hit to Chinese consumer spending at the beginning of this year.

Alibaba is just one of those large businesses seen as a possible target if President Donald J Trump makes additional moves against Chinese firms, after restrictions on Chinese-owned video platform TikTok and Tencent’s WeChat.

“We are closely monitoring the latest shift in US government policies towards Chinese companies which is a very fluid situation.”

On Monday, JD.com beat analysts’ estimates for quarterly earnings, while Pinduoduo Inc is expected to report second-quarter effects on Friday. Alibaba’s net income attributable to ordinary shareholders more than doubled to 47.59 billion yuan from 21.25 billion yuan.

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Excluding items, the company earned 14.82 yuan per American depository share (ADS) versus expectations of 13.78 yuan, according to IBES data from Refinitiv.

Revenue was 153.75 billion yuan versus a prediction 147.77 billion yuan.

The team at Platform Executive hope you have enjoyed the ‘[post_title]’ article. Initial reporting via our content partners at Thomson Reuters. Reporting by Nilanjana Basu and Akanksha Rana in Bengaluru and Josh Horwitz in Shanghai. Editing by Sriraj Kalluvila and Patrick Graham.

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