Alibaba is back in business: the holding's quarterly revenue increased by one third, contrary to forecasts

Source: TechCrunch



Chinese holding Alibaba published financial results for the second quarter of 2015. Compared with the same period last year, revenue was a record.



In July-September of this year, it increased by 32% and reached 3.49 billion dollars (22.17 billion yuan). Revenue not only showed record growth, but also surpassed analysts' expectations. They believed that revenue would not exceed 21.3 billion yuan.

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On Tuesday, October 27, at a preliminary auction in New York, quotes for Alibaba rose by 8%. In October, the company's capitalization increased by 29%.



The total value of goods sold through the company's sites (GMV) amounted to $ 112 billion and increased by 28%. Mobile users accounted for 62% of GMV - about $ 1.65 billion in monetary terms. The company's “cloud” business revenue increased by 128% yoy and reached $ 102 million. The number of active users who regularly shop at Alibaba has increased from 367 to 386 million year-on-year. Of these, 346 million are mobile users. Their number increased by 59% compared with the previous year and by 13% in the last quarter.



The holding recorded net profit growth in July-September 2015 by 7.5 times due to the revaluation of the cost of Alibaba Health . Alibaba's adjusted earnings were 57 cents per share.



In August, it was reported that a fund owned by billionaire George Soros, sold most of the shares of the Chinese company. Even the top managers of the Alibaba Group itself acknowledged that in the summer, the company didn’t have everything went smoothly.



Megamind wrote that on September 12, the American financial magazine Barron's released its forecast about the further fall in shares of the Chinese holding company Alibaba Group. According to magazine estimates, they may lose another 50% in price.



In late August, the company's quotes fell (to $ 68) below the 2014 IPO price. Barron's experts have suggested that Alibaba quotes may continue falling amid slowing economic growth in China.



Alibaba representatives hinted that Barron's experts simply juggled with facts taken out of context. In response to criticism of their strategy, Alibaba said that logistics is a key aspect in e-commerce. Therefore, they invest a lot in the development of logistics networks. The holding was engaged in cloud technologies, as it has technologies and developments that go beyond the core business of the company. Media development in China is one of the most important tasks of the holding, as this is done for the benefit of the whole country. The Chinese media market is still in its infancy. Therefore, losses in this business are inevitable.