Wall Street welcomes Alibaba resultsNovember 05, 2014 00:41
Chinese online commerce giant Alibaba met Wall Street expectations today in its first quarterly report after completing the world's biggest stock offering, propelling its stock to record territory.
Alibaba said its adjusted third quarter net profit rose by 15 per cent to $1.1 billion. But using standard accounting practices that include depreciation and one-time costs, profits fell 39 per cent to $494 million.
Revenue jumped 53.7 per cent from the same quarter last year to $2.7 billion.
"We delivered a strong quarter with significant growth across our key operating metrics," Alibaba Group chief executive Jonathan Lu said in a statement.
Shares in Alibaba jumped to new record highs, adding 2.2 per cent to $104 after the news.
Alibaba operates China's most popular online shopping platform, Taobao, which is estimated to hold more than 90 per cent of the country's online market for consumer-to-consumer transactions.
As it does not sell products directly, but acts as an electronic middleman, Alibaba has been able to generate enviable profit margins. The company also seems to be managing well the transition to mobile devices.
3rd Covid wave inevitable, must prepare for more: Govt scientific advisor
As the SARS-CoV2 evolves and mutates further, it is necessary to be prepared for new waves, Principal Scientific Adviser K VijayRaghavan cautioned on Wednesday, even as he said ferocity of the second wave of coronavirus in the country...