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Alibaba’s sale Increases as Online Shoppers Increase due to the Lockdown

Reports came out Friday which showed that Alibaba Group Holding Ltd has beaten fourth-quarter profits and revenues as more and more people are shopping online for essentials due to the lockdown.

All stores are closed to avoid a large crowd because of the coronavirus hence people are staying at their homes. So the online orders have raised and therefore it has increased the company’s core commerce business to 19% which means 93.87 billion yuan and ($13.16 billion) in the quarter.

At its cloud computing business, the revenue rose nearly 58%.

 Maggie Wu CFO Alibaba said that the results are quite unexpected although the prediction showed a drop in the revenue.

She is happy that Alibaba reported better revenue than the one predicted in the March quarter results.

Now China’s economy is starting up again and the e-commerce group is hopeful that the company will generate more than 650 billion yuan in fiscal 2021.

The company has been trying to expand into new businesses and technologies as the competition in the markets in online shopping has been increasing from smaller rivals such as Pinduoduo and JD.com Inc. These two are the popular ones among the residents living in the lower-tier cities of China.

The overall revenue Alibaba earned rose to 114.31 billion yuan in the quarter ended March 31st from about 93.50 billion yuan a year.

As per the IBES data from Refinitiv the income expected was of 107.04 billion yuan.

Even the gross merchandise volume surpassed $1 trillion for the first time.

The company earned 9.20 yuan per American Depositary share after excluding items.

According to the analysts’ expectations the company was going to earn 6.10 yuan per ADS.

A few companies were listed by the US which was marginally up in trading before the bell.

Alibaba closely checked a bill passed by the US senate according to which all listed companies have to reveal that they are not owned by a foreign government.

Bill was applied to all foreign companies but mainly targeted at China.

Wu said that the financial statements of Alibaba have been prepared in accordance with US GAAP.

She further added that the company has been an SEC filer since 2014 and tries to keep the highest standard of transparency.

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