Alibaba (BABA) Q2 revenue jumps 54 percent, boosts stocks
Alibaba's (BABA) second-quarter net income fell 39 percent as it spent more , but its revenue surged 54 percent to $2.74 billion, beating analysts' expectations. Alibaba (BABA) stock rose 3 percent in premarket trading on the news.
| New York
Chinese e-commerce company Alibaba's second-quarter net income fell 39 percent as it spent more on acquiring businesses and investing in its mobile business and marketing, but its revenue surged 54 percent on strong user demand.
Revenue topped expectations and shares rose 3 percent in premarket trading.
Alibaba went public on the New York Stock Exchange in September in a $25 billion initial public offering that was the largest ever.
For the three months ended Sept. 30 net income after paying preferred dividends fell to $485 million, or 20 cents per share. Excluding one-time items, net income was 45 cents per share. Analysts expected 45 cents per shares, according to FactSet.
Revenue rose 54 percent to $2.74 billion, beating analyst expectations of revenue of $2.61 billion.
Alibaba Group Holding was by far the most active stock of Tuesday's premarket session, with almost 2 million shares changing hands after the Chinese e-commerce giant reported its first quarterly results as a public company.
The stock was last up 1.2 percent to $103, off its highs of the premarket session. Volume was almost 1.8 million shares.
Alibaba posted revenue growth of 53.7 percent. It also said it was "encouraged by continued improvement of mobile monetization."
Office Depot Inc climbed 13 percent to $5.75 before the bell after the office supplies retailer reported its first quarterly profit after three quarters of losses. It also raised its adjusted full-year operating income outlook.
On the downside, Michael Kors Holdings Ltd forecast third-quarter earnings and sales below expectations. It also announced a $1 billion stock buyback program. The stock fell 6.1 percent to $73.25 in heavy premarket trading.
In the broader market, U.S. stock index futures ticked lower , with investors taking a pause following a rally that has taken major indexes to repeated records, although a sharp decline in crude oil could weigh on energy shares.
Futures snapshot at 7:38:
* S&P 500 e-minis were falling 3.25 points, or 0.16 percent, with 154,754 contracts changing hands.
* Nasdaq 100 e-minis were down 8.5 points, or 0.2 percent, in volume of 25,868 contracts.
* Dow e-minis were down 19 points, or 0.11 percent, with 25,161 contracts changing hands. (Editing by Chizu Nomiyama)