Alibaba Group Holding Ltd, one of the most dominant players in the e-commerce industry, reported fourth-quarter revenue beating its estimation; the company credited the development in its core business as well as cloud computing and other solutions.
The company seeks to expand its operating areas and adopt new business sectors such as cloud computing because it is experiencing steadily dropping growth in its core e-commerce business. Alibaba reported a 51 percent rise in combined revenue for January-March to 93.50 billion yuan that exceeded estimates of 91.58 billion yuan, the financial data reporter company said.
Sales, which excludes earnings from consolidated businesses, exhibited a 39 percent year-on-year rise, the company added.
However, Alibaba registered a sluggish growth rate in its top-line businesses, which have been sharply decreasing for a few years since the company confronted heavy competition from its domestic competitors including JD. com, which also reported the slowest revenue growth since 2014.
Alibaba’s shares have risen by more than 2 percent and reached $179.79 in pre-market trading immediately after the company released its fourth-quarter revenue growth report.
The group’s earnings are primarily based on the sale of advertising and promotional services to businesses that record products on Tmall and Taobao, still considerably invested in cloud computing.