Alibaba Holdings Group Inc.'s (BABA) recently reported high revenues of $5.14 billion on diluted non-GAAP earnings of $0.79. This means good news to the business firm since its earnings Have not been affected by the recent shift of China from manufacturing to services.
Furthermore, the reported earnings of Alibaba Holdings Group Inc.'s (BABA) trumps business Analysts expectation of $5.03 billion in revenues on earnings of $0.69.
Among the reasons that Analysts gave before for their low-income expectation was due to a slowdown in the Chinese economy over the last couple of quarters. Forecasting a 39% decline in its core ecommerce operations, Alibaba instead reported a 41% increase in revenues to $4.2 billion in ecommerce operations from the same period a year ago.
Alibaba Holdings Group Inc.'s (BABA) also stopped disclosing the volume of goods sold on its site focusing on increasing new metrics, such as increased mobile engagement. Speaking of mobile world, Alibaba Holdings Group Inc.'s (BABA) has also seen a lot of progress with the number of its mobile active users increasing by 39 percent worldwide in the same period reported by CNBC.
Reports from Wall Street which has been watching the company's gross merchandise volume for a while suggests that the value of transactions carried out by third-party sellers rose by 24.4 percent to about 837 billion yuan.
Amazon Inc. being a fare competitor of Alibaba in the Chinese market, announced that it was launching a tailored version of its Prime service in China to tap into consumer demand for overseas goods, putting market leaders Alibaba and JD.com on notice that it wants access to the Chinese market.
In China, Alibaba's commerce retail business has also seen a great increase in revenue. The current reported figure more than doubled to 17.51 billion yuan compared to the last quarter according to, Nasdaq.
Lastly, Alibaba is also witnessing increased monetization rates. Since Alibaba Inc. focuses not only on foreign brands but also on other high-end profile merchants, higher monetization rates hence profits are to be expected for the trade giant.