Alibaba Holdings Earnings Report: Retailers Beats Expectations

The retail company has reported higher revenue figures than what was estimated by the analysts which has made the investors quite satisfied

Alibaba Holdings has been in a lot of pressure from the global e-commerce market due to the struggle that the Chinese industry currently seems to be facing and right before it releases its sales and revenue figures, the retail company felt more pressurized than ever before. However, it looks like the giant managed to make itself stand strong throughout the bad time in the financial market and it efforts to not let the slow economy growth in the country affect its activities in the trading world might have pulled off in all the right ways.  

The earnings call for the retail company turned out to be a lot more positive than what was expected out of it by the analysts on an average, which was quickly seen turning up the value of the company shares on the index by a huge 8%.

The revenue for the third quarter of the financial year turned out to be at $3.48 billion (22.1 billion yuan) which was far better the actual estimates presented by the analysts of the Wall Street which had been made at a revenue figure of $3.35 billion (21.3 billion yuan).  Back in the month of September, the Alibaba shares experienced a steep dip in which the value of the stock fell even below $60 but in a little time only, it recovered from the crash it could have gone through otherwise.

However, right after the earnings were released, the Alibaba stock price increased on the NYSE which showed that the low share value it had faced in the previous month was just temporary and new strengths are expected in the near future as well.  On the other hand, the main factors which could have affected the total revenue of the quarter was the lower than before general merchandise volume that the retail company reported to be much less than that of the previous year. Last year, the growth in GMV was around 49% whereas in the September quarter, it turned out to be around 28% only, which even though is a growth rate to be taken into consideration, it is still less than what the giant is actually capable of carrying out.