The Chinese e-commerce giant is defying China's economic slowdown, as more customers buy goods over their mobile phones. Fred Katayama reports.
Swashbuckling Alibaba defying the slowdown in China. Attracting many more customers helped drive quarterly revenue significantly higher. And it got more people to transact over the phone. Mobile revenue more than doubled, and mobile made up nearly three-fourths of the total value of goods transacted on its platforms. Profit surged. Wedbush Securities analyst Gil Luria said, "A re-acceleration in volumes is an indication that the Chinese consumer continues to be strong." Alibaba is also looking for growth outside China. During the quarter, it added 100 international brands to its Tmall platform, where big companies like Macy's and Costco sell directly to consumers. And last month, it bought a controlling stake in the Southeast Asian online retailer, Lazada. Within China, it's boosting growth in rural areas, expanding its purchasing and delivery services to more villages. Alibaba shares shot higher in early trading, whittling away at its nearly 7 percent drop this year.