Alibaba’s revenue jump 59 percent, GMV increases by a quarter

China’s Alibaba Group Holding Ltd posted its best revenue growth since before the e-commerce titan’s listing in late 2014, lifting its shares to their highest level in a year.

Total revenue rose to 32.15b yuan (£3.7bn) in the quarter ended 30 June from 20.25bn yuan a year earlier. Alibaba’s strong results came as it still faces challenges. This is mainly due to the fact that Alibaba is now operating at a loss on all its non-commerce divisions. The sharp drop in net income was due to a one-time investment gain in the year-ago quarter related to Alibaba Pictures, the company’s moviemaking business.

Mobile revenue in China surged 119.3% to 17.51 billion yuan ($2.6 billion).

As speculations arise with Alibaba’s earnings beat report, we expect that this will significantly affect on the company’s shares, along with their sales. The cloud computing business has “shown strong growth, nearing a break even point”, said BNP Paribas analyst Vey-sern Ling in a note before results were released.

The company noted that its cloud business was up 156 percent year-over-year to $187 million.

Of course, the success of Amazon is one big reason why USA retailers are in trouble. The stock was stuck in a rut for nearly the entirety of the second quarter, but recently reported fiscal first-quarter results have sent Alibaba stock off to the races again.

“We’re starting to serve local consumers in Southeast Asia, a market with over 500 million potential consumers”, Tsai said.

Gross Merchandise Volume (GMV) transacted in Alibaba’s China retail marketplace was 837 billion yuan (USD 125 billion), up by 24 per cent year on year, state-run Xinhua news agency reported. Legal & General Group Plc now owns 1,024,408 shares of the company’s stock worth $80,944,000 after buying an additional 3,399 shares during the last quarter. Handling the switch to mobile was a critical concern for investors prior to the IPO, and Alibaba executives admitted that the speed of this shift has surprised even them.

GMV falls under part of the SEC’s interest in Alibaba’s operating data for Singles’ Day, which is China’s biggest online shopping day.

Over the last twelve months Alibaba’s share price has increased from 73.38 to 91.77, changing by 25.06%. The number of Chinese users buying products on Alibaba through their mobile phones rose to 427 million from 410 million in the three months previous.

Earnings based on the mobile ecosystem trumped the ones from the desktop side of Alibaba, and it looks like the whole business is catering more to the mobile area.

“We passed an important milestone this quarter in achieving higher monetisation of mobile users than non-mobile users for the first time, reflecting the success of our strategy to stay ahead of the curve by embracing mobile”, said Maggie Wu, CFO of Alibaba Group. On Wednesday, rival JD.com, No. 1 in the Internet Retailer 2016 China 500, said it discontinued 22,000 merchants in the first half of this year.

In July, JD.com and Lenovo expanded their existing relationship with the announcement of a new multi-year partnership created to address the growing online demand for Lenovo products from consumers and businesses throughout China. Another investment in logistics network Cainiao saw losses rise to $34 million in the second quarter, up sharply from $8.9 million a year earlier.