Alibaba Group Holding Ltd. reported its fastest pace of growth in more than four years by wringing more revenue from newer arenas such as cloud computing and entertainment, avoiding the disappointments that hit rival tech giants.
Revenue at China’s biggest e-commerce company climbed 61 percent to 80.9 billion yuan ($11.8 billion) in the three months ended June, matching the average estimate. Alibaba’s mounting spending, such as on acquisitions and expanding its Hema supermarket chain, is hurting margins though. Adjusted earnings per share of 8.04 yuan fell short of the 8.19 yuan estimate.
Billionaire Chairman Jack Ma’s free-spending ways helped the e-commerce heavyweight side-step a Chinese economic slowdown and best its rivals this earnings season. Arch-foe Tencent Holdings Ltd. posted its biggest profit drop in a decade after it ran afoul of regulatory tangles, while internet stalwarts from Facebook Inc. to Twitter Inc. grappled with fundamental issues such as waning user growth.
Continue Reading at Bloomberg.com