Alibaba Group Holding Ltd (NYSE:BABA) on course to make history


Alibaba Group Holding Ltd (NYSE:BABA) posted its second quarter earnings results for 2014, with flaunting improvement as it beats the market consensus. Alibaba Group Holding Ltd (NYSE:BABA) made earnings per share worth $0.45, and revenue worth $2.74 billion. The market consensus was $0.45 in EPS and $2.61 revenue. The Chinese e-commerce giant proved once again, that it’s aiming to take the helm. It is the company’s second public offering after September.

The profit growth is 16%, as compared to last year’s same quarter profit. The company is enjoying the changing trend, of people turning to internet as far as shopping is concerned. And given the fact that the company is Chinese, native people show more faith in it. Now with a market value of $250 billion, Alibaba Group Holding Ltd (NYSE:BABA) has become bigger than Facebook (NYSE:FB) in terms of monetary worth. This signifies the growth of Chinese internet companies.

The company’s executive vice president, Joseph Tsai said that the number of Chinese customers turning to Alibaba Group Holding Ltd (NYSE:BABA) is a strong foundation for the future. Customers have downloaded smartphones apps, to access Alibaba Group Holding Ltd (NYSE:BABA), which highlights the growing influence of the company. Over the next decade, 1/3 of China’s population will become Alibaba Group Holding Ltd (NYSE:BABA)’s customers, according to estimates.

Alibaba Group Holding Ltd (NYSE:BABA) posted profit worth $494 million. A drop of almost 39% was witnessed the same time a year ago. The company will not disclose guidance for its future earnings, since they are more focused on the future.

Alibaba Group Holding Ltd (NYSE:BABA) owes its growth to Taobao Marketplace and Tmall sites. Toabao is behind Alibaba Group Holding Ltd (NYSE:BABA)’s sales of goods from small merchants to consumers eventually. It’s bigger than Tmall but it is expected to fall back in favour of Tmall, which is home to large companies and multinational organizations; they set up their own stores to sell to a large consumer population.

Alibaba Group Holding Ltd (NYSE:BABA)’s revenue costs rose to 33.3% from 27.4%, since last year. Sales and marketing expenses also climbed up to 10.4% from 6%, a year ago. The company has shown keen interest in promotion of China retail marketplaces. Alibaba Group Holding Ltd (NYSE:BABA) stated that its vision is to offer a local farmer, the luxury of selling globally and to encourage users, to turn to internet buying and selling. The company is making good on the boom of e-commerce in China. The large Chinese market will make Alibaba Group Holding Ltd (NYSE:BABA) bigger than Amazon (NASDAQ:AMZN).

The overall revenue grew by 54%, as compared to last year, while merchandise volume in China grew by 49%. At the current profit rate, not only will Alibaba Group Holding Ltd (NYSE:BABA) topple Amazon (NASDAQ:AMZN), it will become the undisputed king of e-commerce industry. While Amazon (NASDAQ:AMZN) experiments with the smartphone market, Alibaba Group Holding Ltd (NYSE:BABA) has its focus on the e-commerce market, and the best thing is it’s daunting position in the local market.