Alibaba's Grip on Consumers Drives Sales Past Estimates
- Results beat projections on both the top and bottom lines
- Cloud revenue doubles but media climbed just 30 percent
Rob Sanderson, managing director at MKM Partners, examines first-quarter results from Alibaba Group Holding Ltd. as revenue beat estimates and sales rose 56 percent. He speaks on 'Bloomberg Markets: European Close.' (Source: Bloomberg)
Alibaba Group Holding Ltd.’s hold over the online shopping habits of Chinese consumers drove quarterly sales and earnings that topped analyst estimates.
Revenue jumped 56 percent and profit nearly doubled in the June quarter, fueled by a core commerce business that’s adding users and increasing how much they spend. That’s being bolstered by a cloud computing division with more than a million customers, helping investors shrug off slowing growth in digital media, which includes a Netflix-like streaming service. The shares rose 3.5 percent to $165.15 at 9:50 a.m. in New York.