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Alibaba Q4 Revenue Rises 51% Year-Over-Year, Trades Higher Despite Trade Tensions

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Alibaba Q4 Revenue Rises 51% Year-Over-Year, Trades Higher Despite Trade Tensions

Chinese e-commerce giant Alibaba Group Holding Limited (NYSE: BABA) reported fourth-quarter revenue was RMB93,498 million, or $13.93 billion, an increase of 51 percent year-over-year. Earnings of $1.28 per share beat the 96-cent analysts estimate.

Alibaba is among the companies with shares that have taken a beating from the escalating tariff issue between the U.S. and China. Concerns about renewed trade tensions between the U.S. and China doesn't seem to be spooking investors away from Alibaba.

What Happened

Alibaba reported adjusted EBITA for core commerce $4.09 billion, an increase of 24 percent year-over-year.

The group reported its annual active consumers in the China retail marketplaces reached 654 million, an increase of 102 million from the 12-month period ended March 31, 2018.

During the March 2019 quarter, Alibaba Cloud launched major products in the areas of graph database, anti-bot protection, blockchain-as-a-service and real time communications.

Alibaba’s cloud computing revenue grew 76 percent year-over-year to RMB7,726 million ($1.15 billion) during the quarter, primarily driven by an increase in average spending per customer.

What Next

In 2020, Alibaba expects revenue to be over RMB500 billion.

Alibaba continues to expand into numerous lucrative markets beyond consumer products, the company’s cloud division as well as its recent investments in the realm of Artificial Intelligence, Machine Learning and Internet of Things.

Alibaba shares ticked higher and traded around $176.90 Wednesday morning.

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Photo credit: Andy Mitchell, Flickr

Posted-In: Earnings News Retail Sales Best of Benzinga

 

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