Alibaba (BABA) is trading at a new all-time high premarket (+5%) after the company reported strong first quarter results this morning.
Non-GAAP EPS rose 65% while revenue rose 56% to $7.4 billion, well above estimates. Investors are happy that the company did not miss on the bottom line two quarters in a row.
To be fair, Alibaba investors are likely more focused on the top line as the company tries to expand in e-commerce and cloud computing, among other businesses, as fast as possible.
Revenue from core commerce increased 58% year-over-year to a whopping 6,347 million, driven by robust paying customer growth (+16% Q/Q to 1.01 million) and improving revenue mix of higher valued-added services, as reflected by ongoing ARPU expansion. Mobile monthly active users grew 4% sequentially to 529 million.
Revenue from cloud computing increased 96% $359 million. Market expansion remains the co's top priority in the cloud. Revenue from digital media and entertainment increased 30% $602 million.
On the call, Alibaba reaffirmed 45-49% revenue growth guidance for fiscal 2018. Management also said it would step up investments in the second half of the year in pursuit of market share. Reminiscent of an American trailblazer Amazon (AMZN), Alibaba said it will always invest in the long-term.
Alibaba has a market cap of ~$430 billion and trades with an low-to-mid 30s earnings multiple (on fiscal 2018 estimates).
Note that Softbank (SFTBY) owns 29.5% of the company and Altaba (AABA) owns 15.2% of the company.