Alibaba Shares Rise

Alibaba Group’s (BABA) shares rose Thursday after the Chinese e-commerce giant’s fiscal first-quarter results easily beat expectations on solid growth in its core retail business.

Alibaba said revenue rose to 114.92 billion renminbi ($15.91 billion) on the quarter ended June 30, up from 80.92 billion renminbi in the prior-year period and ahead of Capital IQ’s consensus of 111.65 billion renminbi. Non-GAAP diluted earnings per American depositary share rose to 12.55 renminbi, up from 8.04 renminbi last year and above the Street’s view of 10.46 renminbi.

Alibaba was 2.3% higher in late-morning trading.

“Alibaba had a great quarter, expanding our user base to 674 million annual active consumers, demonstrating our superior user experience,” said Chief Executive Daniel Zhang. “We will continue to expand our customer base, increase operating efficiency and deliver robust growth. With strong cash flow from our core commerce business, we will continue to invest in technology and bring digital transformation to millions of businesses globally.”

The company said its China retail marketplace added rose to 674 million active customers, up 20 million from the 12-month period ended March 31. Mobile monthly average users rose to 755 million, up 34 million from March.

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