Quarterly profit nearly doubled at the Chinese e-commerce operator of Tmall and Taobao, and revenue shot up 56 percent. Fred Katayama reports.
Strong online sales drove Alibaba's quarterly revenue up 56 percent. The Chinese operator of Tmall and the online marketplace Taobao has been trying to beef up its offline sales by investing in its supermarket business and buying department stores and malls under its so-called "new retail" strategy. But e-commerce keeps taking up a bigger share of the revenue pie. What's more, revenue from its cloud business nearly doubled, and entertainment revenue shot up 30 percent. Alibaba's shares rose Thursday to an all-time high. Phoenix Financial Services chief market analyst Wayne Kaufman: SOUNDBITE: WAYNE KAUFMAN, CHIEF MARKET STRATEGIST, PHOENIX FINANCIAL SERVICES, (ENGLISH) SAYING: "Alibaba's earnings were terrific. And I think Alibaba is an indication of what to me is the most important growth story in financial markets today which is the growth of the Chinese middle class and the Chinese consumer." Alibaba is also pouring more money into e-commerce. It confirmed Thursday it led a $1.1 billion investment in the Southeast Asian online marketplace operator, Tokopedia. Earlier this summer, it poured another $1 billion into Singapore's online commerce company, Lazada Group.