6 ETFs Gain On Alibaba Robust Earnings
Zacks Investment Research | May 06, 2018 10:54PM ET
Chinese e-commerce giant Alibaba Group (NYSE:BABA) reported fourth-quarter fiscal 2018 results before the opening bell yesterday wherein it surpassed both the earnings and revenue expectation and provided an upbeat fiscal revenue guidance.
Earnings of 91 per ADS came in three cents above the Zacks Consensus Estimate. Revenues jumped 61% year over year to $9.87 billion and surpassed the estimate of $9.17 billion. The robust revenue performance was credited to a growing core e-commerce business, booming cloud computing services and strong media and entertainment growth.
Core e-commerce revenues grew 62% year over year, cloud computing revenues soared 103% while digital media and entertainment revenues increased 34%. Mobile monthly active users in its China retail marketplaces increased 37% year over year to 617 million, while annual active buyers totaled 552 million, up 37% year over year.
The Chinese online retail giant has been expanding its presence in core online retail business with investments in supermarkets and stores as well as in new artificial intelligence and cloud computing businesses. Alibaba acquired a 33% stake in Ant Financial, the electronic payment firm Alibaba spun off in 2011. As such, it expects revenues to grow 60% in fiscal 2019, acceleration from 58% year-over-year revenue growth seen in fiscal 2018, or above 50% excluding businesses that are being acquired (see: Original post
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