Alibaba revenues surge 40% in Q3, profits triple
Chinese e-commerce giant Alibaba has seen a 40 per cent surge in growth over the last quarter. As per reports, the conglomerate's profits during this time have tripled.
The general slowdown in the Chinese economy has had little effect on the country's largest corporation. It is believed that revamped grocery services and better shopping recommendations have driven the growth for Alibaba.
In the September quarter, Alibaba rose above expectations to report revenue of 119 billion yuan ($16.9 billion). Alibaba's shares gained 1.5 per cent in pre-market trading.
Alibaba, in recent times, has expanded into smaller cities and diverse markets like entertainment. They have consolidated their international business via Southeast Asian unit Lazada.
While 40% growth is nothing to sniff at, that’s Alibaba’s slowest pace of expansion in more than two years. But Alibaba will continue to drive into not just the countryside but new markets as well, company Vice Chairman Joseph Tsai told analysts on a conference call.
"Alibaba can spend heavily on logistics, new retail, local services like food delivery in the second half, and is confident it can generate returns. We can afford to be aggressive, we have the luxury,” Tsai added.
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