Alibaba produced solid results despite the slowdown in China's economy. It saw huge growth in mobile revenue. Fred Katayama reports.
Alibaba surprised skeptics, producing solid results despite the slowdown in China's economy. The huge surge in mobile users helped nearly triple mobile revenue at the e-commerce giant, and that helped boost overall quarterly revenue 32 percent. Mobile revenue made up more than two thirds of its gross merchandise volume, the key metric that measures the total value of goods transacted on its e-commerce platforms. Volume at its T-mall marketplace, which features big brands, grew faster than its larger marketplace, Taobao, which features smaller sellers. Alibaba was also able to make more money off each transaction through the fees it charges merchants on its marketplaces. Its profit more than doubled. Summit Research analyst Henry Guo said, "Even though there are some economic difficulties in China, I don't see any real change over there in consumer consumption and non-discretionary spending. That should be positive for Alibaba." Alibaba shares - down 14 percent this year - erased some of those losses in early trading.