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Alibaba is now a mobile majority business

Alibaba is now a mobile majority business

The Chinese e-commerce giant's revenue surged 59% to $4.84bn for the quarter ending 30 June 2016, from $3.04bn a year earlier.

Revenue for the company, seen as a proxy for China's increasingly crucial consumer sector, reached 32.15 billion yuan ($4.83 billion) in the June quarter, it said in a statement. Mobile revenue grew 119 percent to 17.51 billion yuan (US$2.64 billion) and accounted for 75 percent of the company's total domestic retail marketplaces intake. It also counts 577,000 paying customers, a boost of 156 percent compared with last year's 263,000.

Despite the fact that the company's revenue exploded, the net income for Alibaba plunged as much as 76 percent year on year to only RMB 7,142 million ($1.1 billion).

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Shares of Alibaba rose 5.65% to $92.26 per share in afternoon trading Thursday. (NYSE:BABA) reported blockbuster earnings for first-quarter fiscal 2017 (1QFY17) as it continues to strengthen its position in the rapidly evolving e-commerce space.

The US Securities and Exchange Commission (SEC) had sought information into Alibaba's accounting for its Cainiao logistics network and its reporting practices for Singles Day, a huge sales event in China.

In this quarter, the revenue for its cloud unit jumped more than 150 percent to 1.24 billion yuan.

The company, based in eastern China's Hangzhou city, operates the world's largest online retail platforms, holding the record for selling US$14.32 billion of merchandize on the so-called "Singles' Day" of November 11, 2015.

Revenue from Alibaba's global commerce retail business in the quarter was RMB1,117 million (US$168 million), an increase of 123% compared to RMB501 million in the same quarter of 2015.

"The business diversification in digital entertainment and cloud is icing on the cake".

While looking at the Stock's Performance, Alibaba Group Holding Limited now shows a Weekly Performance of 8.28%, where Monthly Performance is 13.9%, Quarterly performance is 15.93%, 6 Months performance is 51.51% and yearly performance percentage is 25.06%. The company said it had a profit of $0.74 Earnings per Share for the quarter.

A number of other brokerages also recently issued reports on BABA.

"Alibaba is the largest online commerce platform in the world, as defined by reported GMV", Colin Sebastian, an e-commerce analyst at Robert W. Baird & Co. said in a note to investors Thursday.

Earlier this year, Alibaba invested $1 billion to snatch a majority of Lazada, a Rocket internet-backed e-commerce site in Southeast Asia that supports the mobile wallet-commerce company Paytm in India. "We passed an important milestone this quarter in achieving higher monetization of mobile users than non-mobile users for the first time", said Maggie Wu, CFO of Alibaba Group. Experts say that Alibaba is more focused on trying to breakeven in emerging markets in Southeast Asia than the overly competitive U.S. market.

Furthermore, mobile overtook desktop for the first time in Alibaba's history in terms of GMV.

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