Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Companies

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

Alibaba beats estimates as pandemic fuels online, cloud computing demand

08/20/2020 | 06:39am EST
FILE PHOTO: The logo of Alibaba Group is seen at the company's headquarters in Hangzhou

China's Alibaba Group Holding Ltd beat quarterly revenue and profit estimates on Thursday, as its core commerce and cloud computing businesses continued to grow following China's emergence from the coronavirus lockdown.

Sales from the commerce business alone jumped 34% to 133.32 billion yuan ($19.27 billion) in the quarter ending in June, slightly slower than a year earlier but still enough to prod its shares higher after the results.

The company's stock has soared 23% this year as investors globally poured money into technology businesses seen as "stay-at-home" winners from the pandemic, and Alibaba said it had bounced back from a hit to Chinese consumer spending at the start of this year.

"Our domestic core commerce business has fully recovered to pre-COVID-19 levels across the board, while cloud computing revenue grew 59% year-over-year," Chief Financial Officer Maggie Wu said in a statement.

Alibaba is one of the big businesses seen as a potential target if President Donald Trump makes further moves against Chinese companies, following restrictions on Chinese-owned video platform TikTok and Tencent's WeChat.

"Today, we face uncertainties from not only the global pandemic but also increasing tensions between U.S. and China," Chief Executive Officer Daniel Zhang said.

"We are closely monitoring the latest shift in U.S. government policies towards Chinese companies which is a very fluid situation."

On Monday, JD.com beat analysts' estimates for quarterly sales, while Pinduoduo Inc is expected to report second-quarter results on Friday. Alibaba's net income attributable to ordinary shareholders more than doubled to 47.59 billion yuan from 21.25 billion yuan.

Excluding items, the company earned 14.82 yuan per American depository share (ADS) versus expectations of 13.78 yuan, according to IBES data from Refinitiv.

Revenue was 153.75 billion yuan versus a forecast 147.77 billion yuan.

($1 = 6.9189 Chinese yuan renminbi)

(Reporting by Nilanjana Basu and Akanksha Rana in Bengaluru and Josh Horwitz in Shanghai; Editing by Sriraj Kalluvila and Patrick Graham)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
ALIBABA GROUP HOLDING LIMITED -0.53% 258.62 Delayed Quote.11.12%
PINDUODUO INC. -0.53% 171.89 Delayed Quote.-3.25%
SUN ART RETAIL GROUP LIMITED -3.43% 7.6 End-of-day quote.-3.55%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) 0.00% 6.4845 Delayed Quote.-0.49%
Latest news "Companies"
12:03pKROGER : Michigan Mega Millions ticket wins $1 billion jackpot
AQ
11:46aEBAY : Interesting and Outrageous Purchases Interesting and Outrageous Purchases The start of a New Year is always hectic, but wanted to take a minute to share a fun retrospective of some of the craziest sales of 2020. While millio...
PU
11:43aLITHIUM AMERICAS : Mine OK'd in Trump's last days may boost Biden energy plan
AQ
11:41aPFIZER : UK doctors seek review of 12-week gap between vaccine doses
AQ
11:38aItaly PM says vaccine supply delays are serious contract violations
RE
11:38aBORAL INVESTOR ALERT : Securities Litigation Partner James Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Boral Limited To Contact Him Directly To Discuss Their Options
GL
11:34aItaly pm conte says rome will use all available legal tools to make sure contractual commitments are met - facebook
RE
11:32aItaly pm conte says delays in vaccine deliveries amount to serious contract violations - facebook
RE
11:31aItaly pm conte says delays in vaccine supplies from pfizer, astrazeneca unacceptable - facebook
RE
11:17aSOLARWINDS DEADLINE ALERT : Securities Litigation Partner James Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In SolarWinds To Contact Him Directly To Discuss Their Options
GL
Latest news "Companies"