China’s biggest e-commerce titan, Alibaba, declared a fourth quarter revenue that rose 39% and demolished the estimates from the experts at Wall Street, as they benefit from a huge growth in merchandise volume.
The revenue of the company keeps increasing and the American Depository shares got to 78.48 dollars this Thursday.
The estimates of the revenue growth were at 23.22 billion Yuan in average, while the true growth capped just under 24.3 Billion Yuan.
Gil Luria – Wedbush Securities – stated that the Chinese consumer seems not to be weakening yet, and that this proves that something is being done right. Luria adds that Alibaba is a big spart of the Chinese consumers’ spend and that the acceleration in volume of the sales is a clear indicator of the continued strength of the Chinese consumer.
Alibaba has been trying to expand and leave China’s e-commerce scenario exclusivity, and Alibaba’s GMV mobile is also experiencing continued growth, as mobile monthly users have risen 42% to 410 million users.
The numbers have also risen to 5.31 yuan net profit from 2.87 million yuan profit a year before.
Another thing worthy to note is that Alibaba’s US listed shares fell 7% throughout this year, closing at 75.82 dollars, regardless of all of this interesting information.
Only time will tell if Alibaba will win the grapple over a economy that seems to be losing steam as far as consumerism is concerned, but for now the company seems to be going strong.
Alibaba is mutating however, so we can expect to see the company leaving its comfort area to try to get a safe haven outside of the Chinese economy, permeating other markets and trying to get a foothold in markets that are different from what the company is used to handle.