Alibaba Group Holding Co. reported fourth quarter earnings that surpassed analysts’ expectations. The pandemic-induced lockdown seemed to boost online consumer spending.
The e-commerce behemoth’s diluted non-GAAP earnings for the three months ending in March, came in at $1.30 per share, exceeding the Street's estimate of around 86 cents per share.
Revenue increased +22% year-over-year to $16.144 billion, also beating analysts' estimates of a $15.28 billion.
Cloud computing revenues surged +58% to a record $1.725 billion.
"The pandemic has fundamentally altered consumer behavior and enterprise operations, making digital adoption and transformation a necessity", said CEO Daniel Zhang.
Meanwhile, potential risks to China shares trading on U.S. exchanges have emerged following the recently passed Holding Foreign Companies Accountable Act by U.S. Senate lawmakers. The bill would require non-U.S. companies listed on domestic exchanges to prove they are "they are not owned or controlled by a foreign government.”