The Chinese multinational technology company, Alibaba Group, surpassed third quarterly revenue estimates driven by e-commerce growth after China emerged from coronavirus restrictions.
Revenue at Alibaba’s cloud computing business (company’s focus area), jumped 60% to 14.9 billion yuan. Also, sales from its core e-commerce business rose 29% to 130.92 billion yuan.
The company’s net income fell 63% to 26.52 billion yuan, with Alibaba making a one-off profit last year from its 33% stake in the Ant Group, affiliate company of Alibaba Group.
The world’s highest-valued FinTech Company, Ant Group’s $37 billion IPO (initial public offering) has been suspended in both Shanghai and Hong Kong.
According to some analysts and investors, it was an attempt by Beijing to cut founder Jack Ma and his financial services empire down to size.
However, Alibaba’s chief executive Daniel Zhang said that Alibaba is actively assessing the suspension of its affiliate Ant Group’s listing and will take appropriate measures accordingly.
Meanwhile, Ant Group said separately it would decide whether to restart its IPO after fully reviewing and evaluating relevant measures.
Alibaba’s performance also coincided with markets awaiting the results of the US presidential election.
According to IBES data from Refinitiv, Alibaba’s revenue increased by 30% to 155.06 billion yuan in the quarter ended 30 September, compared to an estimated 154.74 yuan. The company’s US-listed shares have gained about 39% this year.