Shares of Alibaba Group Holding Ltd. (NYSE: BABA) surged in pre-market trading on Friday after it reported better-than-expected revenue numbers that handily beat Wall Street analyst expectations.
The stock was up 3.7% to US$189.26 in the New York Stock Exchange before the opening bell.
The e-commerce giant reported fiscal fourth quarter March 2018 earnings of US$0.91 per share on a better-than-expected 61% rise in revenue to US$9.73 bn, driven by steady sales in its core ecommerce and cloud computing businesses. The consensus earnings estimate was US$0.84 per share on revenue of US$9.3bn.
Alibaba, which is China’s second-largest company is now expanding at a mind-boggling pace on international expansion and new businesses from cloud computing to supermarkets.
The outlook for the year also outstripped projections for growth, with Alibaba expecting fiscal 2019 revenue of over US$59.85 bn, excluding acquisitions. Including the acquisitions of Ele.me and Cainiao Network, the Chinese e-commerce giant expects revenue of more than US$63.8bn. This is much higher than the current consensus estimates of revenue of US$54.50bn for the year ending March 31, 2019.
“Our e-commerce platform is developing into China’s leading retail infrastructure. During the past year we doubled down on technology development, cloud computing, logistics, digital entertainment and local services so that we can capture consumption growth in