Alibaba’s cloud and mobile businesses soar, but total revenue disappoints
Alibaba Group’s cloud computing and mobile businesses are surging, but its reported revenue in the second quarter missed analysts’ estimates, amid a slowing Chinese economy.In the quarter ended June 30, Alibaba generated over $3.2 billion in revenue, up 28 percent year over year, but short of the $3.39 billion consensus expectation from analysts polled by Thomson Reuters.The e-commerce giant raked in a net profit of US$4.9 billion, for a 150 percent increase, but the huge profit increase largely came from its film production arm, Alibaba Pictures. In June, the company reduced its stake in Alibaba Pictures, and “deconsolidated” it from the financial results. This resulted in a major gain for Alibaba’s investment income.To read this article in full or to leave a comment, please click here