Alibaba-Group.jpg (Photo : Reuters)
The third financial quarter came in good for e-commerce giant Alibaba as it reported a 54-percent revenue growth on Tuesday night, boosting investors' confidence in the company.
The report reflected better results than that on the first quarter, indicating that the giant company is still growing after its $25-billion initial public offering (IPO) in the United States.
Although the sales growth showed an increase, the company's profit for the quarter went down 39 percent from a year ago, equal to $494 million or 20 percent per share. The decline was attributed to the company's recent spending on its mobile platform and the acquisition of more internet assets.
On Tuesday, Alibaba's shares value rose 4.19 percent and closed at $106.07.
Bank investment firm Goldman Sachs predicted that the company's stock could be worth $133 if it continues to go with the current trend until 2017.
By 2016, the report said that the company's transactions will go up to 5 percent of China's economic output and it will have $350 billion in capital.
Alibaba is known for operating Taobao and Tmall, the two largest consumer-to-consumer (C2C) and business-to-consumer (B2C) marketplaces in China.
The company's earning report came out in time for the annual Singles Day online shopping spree on Nov. 11, where financial analysts look at it as an opportunity.
Singles Day is a popular Alibaba gimmick known to attract customers through massive promotions in the marketplaces. Sales during the event rose from 50 million yuan on its first year in 2009 to 35 billion last year.
From a small promotional gig, Singles Day has evolved into a huge online bonanza for many online retailers, delivery companies and even the local workforce.
