The Chinese e-commerce giant Alibaba Group has provided helpful updates.
It has advanced on its plans for cloud computing growth, untapped retail markets, and the long-term value of building a strong business model.
China-based e-commerce titan Alibaba Group (NYSE:BABA) absolutely crushed its first-quarter earnings report. Sales rose 53% year over year to $7.4 billion, adjusted earnings jumped 58% to $1.17 per share, and both figures exceeded Wall Street’s estimates of $7.2 billion and $0.92 per share, respectively. Share prices have gained 7% since the report, adding to an 82% return over the last 52 weeks.
Following that stellar earnings release, Alibaba’s management also held an informative conference call with financial analysts. Here are three of the most important takeaways from that call.
1. A success years in the making
This company isn’t chasing short-term wins to impress investors. Instead, Alibaba invests in growth engines for the long run.
2. Greenfield growth opportunities
Alibaba is already a huge retail presence in China. Nevertheless, there is plenty of untapped growth left to explore.
3. Cloud computing is set to soar
In the future, we will see more and more synergies between digital media and entertainment and our core commerce business that complement each other in terms of consumers, content and commercialization.