Alibaba Group (NYSE:BABA) stock advanced in Thursday’s early deals boosted by what the market sees as a significantly better than expected performance in its third quarter.
Supported by the unwinding of Chinese COVID lockdown and the broader holiday period outside of China, Alibaba saw revenue at US$35.92bn (247.76bn yuan) marking a 2% rise versus the same quarter in the prior year. Market consensus for revenue was pitched at 245.18bn yuan.
Net income smashed expectations coming in at 46.82bn yuan versus 34.02bn, whilst earnings (per ADR) totalled 19.26 yuan compared to 16.26 yuan.
CEO Daniel Zhang described it as a “solid quarter despite softer demand, supply chain and logistics disruptions."
“We expect continued recovery in consumer sentiment and economic activity," the CEO added. “We are focused on driving growth for our customers amid the competitive landscape, and creating sustainable, long-term value for our shareholders.”
Chief financial officer Toby Xu added: “Our net cash position remains strong and we continue to generate healthy cash flow.”
In New York, Alibaba stock started Thursday’s session up 5.33% changing hands at US$99.53.