Alibaba: Q2 earnings

Summary of Alibaba's earnings for its second quarter.



Earnings per share


$2.62 billion $0.45


$2.75 billion $0.45


Start trading nowlog in or see live chart

The first set of earnings from this stock-market newcomer came through in line with expectations. The headline earnings figure was 45 cents-per-share, although once items like stock-based compensation were included the figure fell to 20 cents-a-share, down 38.6% from a year earlier. Revenue for the quarter was $2.74 billion, ahead of the $2.64 billion forecast.

The most encouraging sign was the growth in customers. Expectations are for the company to count as much as 50% of China’s 1.3 billion population as customers over the next decade, up from the current 25%. Such a growth rate would provide a real rationale to back the company, and might at least account for the heady valuations on which it currently trades. The lack of forward guidance on future earnings is going to prove to be disappointing for some, but the growth in smartphone transactions will compensate for this. Facebook’s warning about rising costs should be a stark example for Alibaba investors of a potential pitfall, but this will only become a problem in future quarters. 

Here is a  full list of US stocks that can be traded outside New York Stock Exchange trading hours of 2.30pm to 9pm (London time).

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.