Slowdown in China? Guess again.
Many investors were worried about the health of China's economy. But it looks like the Chinese are still shopping until they drop.
The country's e-commerce giant Alibaba reported a huge jump in sales that topped Wall Street's forecasts.
Alibaba said on earlier that revenue for its fiscal 2nd quarter surged nearly 60% from a year ago to $4.84 billion, easily beating analysts' estimates for sales of $4.54 billion.
Mobile revenue more than doubled. Alibaba now has 427 million mobile monthly active users, an increase of almost 40% from last year.
Alibaba chief financial officer Maggie Wu said the company's sales growth was the highest since the company went public in September 2014. And added that this was the first time Alibaba made more money from mobile users than desktop users.
The company also reported a net profit, after backing out some one-time items, of $1.8 billion. That was up 33% from the same period last year and also was higher than what Wall Street analysts were expecting.
Alibaba’s stock was up more than 4% in early trading on the news.
This appears to be a sign that concerns about China's middle class pulling back may be for naught. It may also show that Alibaba is finally doing a better job of combating the plague of counterfeit goods that are often found on Alibaba's sites.
