On Friday, the 1st of November 2019, China’s e-commerce behemoth, Alibaba Group Holding Ltd. of Jack Ma, a former salesman turned into a billionaire entrepreneur back in the 2000s, had reported a 40 per cent rise in its second quarterly revenue that ended up on September 30th, bolstered by robust growth in its cloud computing alongside e-commerce business.
Followed by the reveal of its upbeat quarterly earnings’ report, New York-listed shares of Alibaba Group Holdings Ltd. ticked up more than 2 per cent to $180.63 in pre-market trading, but wrapped up the day 0.12 per cent lower to $176.46 over concerns growing competition in the local market from rival JD.com ahead of a holiday quarter sales.
Besides, according to quarterly earnings’ report of the e-commerce Goliath of China’s much-monopolized online sales business, Alibaba Group Holding Ltd. holding 60 per cent stake of China’s entire e-commerce industry, the company’s total revenue surged to $16.91 billion or ¥119.02 billion in its second quarter that ended up of September 30th from an earlier figure of ¥85.15 billion on a year-on-year basis, beating an analysts’ estimate of ¥116.8 billion, IBES data from Refinitiv showed.
Aside from that, Alibaba had also added in its quarterly earnings’ report that the Chinese e-commerce giant’s total revenue generated from its cloud computing business witnessed a 64 per cent climb to ¥9.29 billion during its second quarter, while the company’s net earnings from e-commerce business surged roughly 40 per cent to ¥101.22 billion.
Meanwhile, tuning out a cautiously optimistic outlook, in a post-earnings’ call with the analysts, Alibaba CFO (Chief Financial Officer), Maggie Wu said, “Average revenue per user (ARPU) in lower tier cities is not as low as people imagine. I think we have addressed very well in our Taobao apps different demands and levels of consumers. ”