Alibaba shares gain after big revenue turn

Alibaba Group Holding Ltd.'s US deposit shares increase by 3% in premarket trading on Friday after the Chinese e-commerce giant reported a significant earnings slump while also topping sales expectations.

The company reported September-quarter net income of RMB72.5 billion ($ 10.1 billion), or RMB27.51 a share ($ 3.85), up from RMB 20 billion, or RMB7.62 per share, the year for. Exclusive disposable items, Alibaba & # 39; s

BABA, -0.48%

Adjusted earnings per share rose to RMB1[ads1]3.10 ($ 1.83) from RMB9.60, while analysts surveyed by FactSet asked for RMB10.75.

Alibaba's revenue rose to RMB119 billion ($ 16.7 billion) from RMB85.1 billion and came in ahead of estimates, which modeled RMB117 billion. The company had revenue of RMB101.2 billion from its core trading segment, which includes the popular platforms Taobao and Tmall. Alibaba had 693 million active customers annually at its Chinese retail locations and 785 million mobile monthly active users.

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The company revealed that net tax revenue increased to RMB 9.3 billion from RMB 5.7 billion, marking 64 % growth.

See also: Alibaba extends its commercial platform to US small businesses

Alibaba shares have gained 29% so far this year, as the S&P 500

SPX, -0.30%

has risen 21%.