UPDATE: Alibaba Shares Drop On Downbeat Revenue

Shares of Alibaba Group Holding Ltd. BABA dropped more than 4.5% in pre-market trading after the company reported downbeat revenue for the third quarter. Its revenue climbed 40% to $4.22 billion, missing analysts' estimates of $4.45 billion. In the latest quarter, net income attributable to ordinary shareholders came in at $957 million, or $0.37 per share. Excluding items, Alibaba earned $0.81 per share, versus analysts' estimates of $075 per share. Gross merchandise value climbed 49% to $127 billion. Mobile GMV accounted for 42% of Alibaba's total GMV, compared to 36% in the September quarter. The number of active users on the company's mobile platforms surged to 265 million in December, compared to 136 million, in the year-ago period. Maggie Wu, chief financial officer of Alibaba Group said, “We continue to execute our focused growth strategy, and the fundamental strength of our business gives us the confidence to invest in new initiatives to add new users, improve engagement and customer experience, expand our products and services and drive long-term shareholder value.” Alibaba shares fell 4.87% to $93.66 in pre-market trading.