Alibaba Group Holding has reported operating income of US £1.1 billion in the quarter ended June 2014.
These results place it firmly at the top table of the eCommerce sector, showing that it has eclipsed both eBay and Amazon which, together, have an estimated combined market value of US$228 billion. Alibaba’s results are a reflection of the success of its Taobao and Tmall platforms which are gathering momentum in China as increasing number of consumers there adopt mobile. It had 188 million mobile active users in the quarter to June, up from 163 million for the previous quarter, and mobile accounted for 32.8 per cent of Alibaba’s total transactions. There remains a massive potential for further growth in Alibaba’s home market as well as, of course, the potential to take a large bite of the US market from aforementioned competitors, Amazon and eBay.
Alibaba has yet to announce the price of shares in its IPO but pundits believe that the company could well be worth US $187 billion and may well exceed this.
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