Alibaba's revenue falls below the estimates. Its cloud computing services growth outpaces that of Amazon and Microsoft
The Chinese e-commerce giant – Alibaba reported its earnings for the fiscal second quarter. The results were mixed.
Alibaba's EPS came in at $1.54, topping the expectations by $0.06. However, the revenue came in $510 million short at $22.8 billion.
In the quarter, Alibaba reported that its monthly active users reached 881 million. At a Chinese level, it has 757 million users, 15 million more than it had at the same time last year.
But the EPS and the number of users are not the only segments that reported promising figures. Alibaba's cloud segment brought a revenue that not only topped expectations, but its growth pace outperformed Amazon and Microsoft. For the quarter ended in September, cloud computing revenue came in at $2.24 billion, marking a 60% rise from the same time last year.
In the same period, Amazon's Web Service surged 29%, while Microsoft Azure's grew 48%. The numbers are more surprising, considering that Alibaba's cloud services are significantly smaller than Amazon and Microsoft.
Despite the results, this week wasn't so good for Alibaba. Its stock price fell roughly 8% after Ant Group announced that it is postponing its IPO. Moreover, after the report, the company's share price inched down 3%.
Read here about Ant Group's decision to halt the IPO!
Sources: tipranks.com, cnbc.com
This information is prepared for general circulation. It does not have regard to the specific investment objectives, financial situation or the particular needs of any recipient.
You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.
This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of sc.capex.com