Wednesday, 5 November 2014

Alibaba Post IPO Profit Jumps 16%

China’s internet commerce behemoth Alibaba announced a jump in profit since its initial public offering in September. Alibaba’s profit grew 16 per cent from the same period a year earlier as the company’s sites benefited from the growing number of Chinese turning to the Internet to shop.

Alibaba shares have also risen about 50 per cent since it raised nearly $21.8 billion in the highly anticipated initial stock sale. The listing even surpassed the offering of Facebook, the American social media giant. Now with a market value of more than $250 billion, Alibaba is worth more than Facebook.

Alibaba said that in the quarter ended Sept. 30, its net profit jumped to $1.1 billion and its revenue rose 54 per cent, to $2.7 billion.

Alibaba also reported net profit using generally accepted accounting principles of $494 million, a drop of 39 per cent from the same period a year earlier. The company cited costs related to stock awards before its listing and acquisition-related expenses.


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