Alibaba was up 6% last night
Alibaba was *up 6%* last night.
This is a stock that has fallen 20% past 12 months. Yet revenue and earnings continue to grow.
In the long run, earnings trend of a stock drive share price.
Below are extracts of their earnings call:
*Three secular development*
I want to refresh your memory about three secular developments that I referred to in the last earnings call. One, consumption upgrade by China’s 300 million middle-class consumers continues its course. By OECDs projection, the Chinese middle-class will grow to 850 million people by 2030. Two, the healthy balance sheet of Chinese households and the increasing availability of credit will fuel consumption. Three, Alibaba’s active role in digitizing the retail sector expands our total addressable market to the entire $5 trillion U.S. dollar retail economy in China.
*Concern about trade tensions*
Concerns about trade tensions might affect sentiment, but Alibaba’s exposure to the tangible effects of trade tariffs is small. For our businesses in e-commerce, consumer services, entertainment and cloud computing, the primary growth driver is not exports but domestic consumption and corporate transformation.
Digitization of retail sector and the resulting productivity and efficiency gains will accrue to Alibaba with or without a trade war. Alibaba is well positioned to help solve the structural trade deficit issue, vis-à-vis the United States. With nearly 700 million Chinese consumers shopping on Taobao and Tmall, we are the platform of choice for American companies and farmers to gain access to the Chinese market.
*Alibaba continues to report solid growth rate*
In the December 2018 quarter, our major financial metrics continued to record strong results. Our total revenue grew 41% to RMB117 billion. This is actually the first quarter our quarterly revenue surpassed RMB100 billion.
The increase is mainly driven by the robots revenue growth of our China commerce retail business. The consolidation of all amounts as well as strong revenue growth of Alibaba Cloud. Even stripping out acquired businesses, our revenue growth during the quarter continues to outperform that of almost all global technology peers.
This is a stock that has fallen 20% past 12 months. Yet revenue and earnings continue to grow.
In the long run, earnings trend of a stock drive share price.
Below are extracts of their earnings call:
*Three secular development*
I want to refresh your memory about three secular developments that I referred to in the last earnings call. One, consumption upgrade by China’s 300 million middle-class consumers continues its course. By OECDs projection, the Chinese middle-class will grow to 850 million people by 2030. Two, the healthy balance sheet of Chinese households and the increasing availability of credit will fuel consumption. Three, Alibaba’s active role in digitizing the retail sector expands our total addressable market to the entire $5 trillion U.S. dollar retail economy in China.
*Concern about trade tensions*
Concerns about trade tensions might affect sentiment, but Alibaba’s exposure to the tangible effects of trade tariffs is small. For our businesses in e-commerce, consumer services, entertainment and cloud computing, the primary growth driver is not exports but domestic consumption and corporate transformation.
Digitization of retail sector and the resulting productivity and efficiency gains will accrue to Alibaba with or without a trade war. Alibaba is well positioned to help solve the structural trade deficit issue, vis-à-vis the United States. With nearly 700 million Chinese consumers shopping on Taobao and Tmall, we are the platform of choice for American companies and farmers to gain access to the Chinese market.
*Alibaba continues to report solid growth rate*
In the December 2018 quarter, our major financial metrics continued to record strong results. Our total revenue grew 41% to RMB117 billion. This is actually the first quarter our quarterly revenue surpassed RMB100 billion.
The increase is mainly driven by the robots revenue growth of our China commerce retail business. The consolidation of all amounts as well as strong revenue growth of Alibaba Cloud. Even stripping out acquired businesses, our revenue growth during the quarter continues to outperform that of almost all global technology peers.
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