Wall Street amazed at £16bn float for Alibaba
Chinese e-commerce giant Alibaba impressed the market with its first update since joining the New York Stock Exchange with a record-breaking $25bn (£16bn) float, dwarfing rivals in the three months to end of September.
Revenues rose 53.7% — compared with Amazon’s 20% growth over the same period — and hit $2.74bn (£1.71bn), while shares edged up as much as 3% to a record high after revealing a brisk 49% rise in the gross value of merchandise sold.
Alibaba affirmed Wall Street’s expectations of industry-leading growth.
Investors have focused on its dominance in China, despite concerns about corporate governance and sliding margins.
Margins on earnings before tax and other payments did fall to 50.5%, from 54.4% in the previous quarter.
But investors appeared more interested in the 52% growth in active users, to 307m.
An improvement in the mobile monetisation rate to 1.87% means the Chinese company is getting a larger percentage of every mobile transaction it handles.