Alibaba Sales Surge Amid China Slowdown

Alibaba is doing better than expected due to the slowdown of China economy.

Alibaba Group Holding is the biggest e-commerce company in the world. After posting a record Initial Public Offering (IPO) in the history valued at $25 billion, most of the pressure is on it when the earnings season is near. Investors along with analysts do not expect the online retailer to post poor result or miss the estimates of the analysts. The company announced its earnings report on Tuesday where, as usual, it topped the estimations of the Wall Street. The economy of China is currently declining however Alibaba has no signs to stop.

It is believed that the revenues of Alibaba Group jumped 32 percent in the third quarter if we compare it from the same quarter last year. This was all possible from the robust use of its mobile applications of various online marketplaces by the customers. The statistics were quite amazing when the company revealed them on Tuesday. According to Alibaba, it ended the third quarter with more than 346 million monthly active users on its mobile applications of online marketplaces. This has massively increased by 60 percent from the monthly active uses the company had in 2014.

Furthermore, the company’s mobile revenue also increased by 200 percent. The CEO of the company, Daniel Zhang, stated in the press release “This was a great quarter for Alibaba Group, with strong growth across the board and particular outperformance in mobile. We are winning in mobile and remain focused on our top strategic priorities.”

Analysts also believed that the company’s performance in this quarter was terrific and stated that it promoted its Taobao marketplace app at the right time to online shoppers and online retailers. According to the CEO of retail research firm Conlumino, Neil Saunders, said in a report “Alibaba deserves credit for taking a lead in terms of shifting its proposition and platforms firmly away from PC to mobile based selling.”

The company is quite content with its performance in this quarter and has already set sights to performing better in the last quarter of the fiscal year. Alibaba has plans to fully purchase the YouTube of China named as Youku Tudou.

Analysts and investors were concerned that declining economy of China might affect Alibaba’s performance however the online retail giant is determined to break records again in the upcoming Singles’ Day event on November 11 along with the holiday season festival. 

Analysts also believed that the company’s performance in this quarter was terrific and stated that it promoted its Taobao marketplace app at the right time to online shoppers and online retailers.