Article Hero

Mixed quarter for Alibaba

1604670052.jpg
Miguel A. Rodriguez
Miguel A. Rodriguez
06 noviembre 2020
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

disclaimers_articles

article_share_title

article_rating_title

awful
ok
great
awesome

read_more

Miguel A. Rodriguez
Miguel A. Rodriguez
financial_writer

Miguel comenzó su destacada carrera profesional en reputadas instituciones financieras como el Banco Santander y el Banco Central-Hispano. Es autor de importantes libros sobre trading en el mercado de divisas.