Alibaba Group (NYSE:BABA)'s US-listed shares moved lower after the Chinese eCommerce giant posted mixed third quarter results.
The company’s profit rose 58% year-over-year to 43.9 billion yuan ($6.07 billion), ahead of Wall Street estimates of 25.83 billion yuan.
The increase was attributed to mark-to-market changes from its equity investments, a decrease in impairment of its investments and increased income from operations.
Revenue, however, grew 5% year-over-year to 236.5 billion yuan but was short of the 238.9 billion yuan consensus.
Cloud revenue grew 7% from the year-ago quarter, with AI-related product sales growing at triple-digit rates.
Additionally, Alibaba’s international digital commerce group (AIDC) saw a 29% revenue increase, fueled by the growth of its cross-border business, especially AliExpress' Choice initiative.
“This quarter we continued to invest in the user experience and strengthen product offerings to serve our consumers,” Alibaba Group (NYSE:BABA) CEO Eddie Wu said in a statement.
“We entered into long-term collaborations with industry peers to broaden payment and logistics services on Taobao and Tmall platforms, which we expect will accelerate our overall growth.”
During the quarter, the company repurchased US$3.1 billion shares, reducing its total shares outstanding by 2.1% since the end of June.
Alibaba’s shares were down 3% at US$87.85 on Friday morning in New York.