Alibaba Holding Co. (BABA – Get Report) posted stronger earnings than expected in the fourth quarter, consumer growth in its online market and its link with Starbucks (SBUX – Get Report), the world's largest coffee chain , helped boost revenue and its sales of cloud computing increased.
Alibaba said non-GAAP diluted earnings for the three months ending in March, the company's fourth fiscal quarter, reached $ 1.27 per share, up 39.5% from the same period last year and well ahead of the Street Street forecast of 95 cents per share. Group revenues increased 41% to $ 13,932 million and again exceeded badysts' estimates of $ 13.33 million.
The revenue from cloud computing, said Alibaba, rose 76% from last year to 7,726 million Chinese yuan ($ 1.12 billion), while the group continues to challenge the dominance of Amazon's global market (AMZN – Get report ) and Microsoft (MSFT – Get report) Azur.
"Increasingly, Alibaba is becoming synonymous with daily consumption in China, increasing our base to 654 million active annual consumers and extending our penetration in less developed cities," said CEO Daniel Zhang. "Our cloud and data technology and our tremendous traction in New Retail have allowed us to continuously transform the way companies operate in China and other emerging markets, which will contribute to our long-term growth."
US-listed shares of Alibaba were marked with a 4.5% increase in pre-market operations immediately after the earnings release to indicate an opening price of $ 182.46 each, a measure that would extend the profit of the year to the date of the action to around 33%.
Alibaba said its link with Starbucks, which includes on-demand delivery, had reached 2,100 stores in 35 cities in China at the end of the quarter, and that its Alipay and Taobao applications had helped accelerate the membership gains for the rewards program. Starbucks