Alibaba’s Revenue Surges as Jack Ma’s Free Spending Bears Fruit

Posted On August 23, 2018 1:43 pm

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.

Shares of Alibaba rose in pre-market trade as investors cheered the result, plus more than $3 billion in new funding for its newly acquired food delivery arm as it does battle with Meituan Dianping.

Continue Reading at Bloomberg.com

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