Alibaba profits double as Amazon share price plunges

Alibaba Group, the world’s largest e-commerce services provider, has set its sights on further domestic and international expansion after recording a 110% year-on-year increase in profits as its number of active buyers hit 407 million over the course of last year. “Our proven ability to deliver an unparalleled consumer experience and to help merchants attract, engage and retain buyers will drive future growth in our core business,” Alibaba chief executive Daniel Zhang Yong said in an announcement before the opening of the US market. Year-on-year revenue increased 32% to CNY 34.543 bn ($5.25bn).

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In contrast,  Amazon CEO Jeff Bezos  lost more than $6bn in after-hours trading on Thursday, according to Forbes,  as Amazon’s stock dropped in response to the company’s fourth quarter earnings report. Investors had been expecting  a positive report from Amazon, but the company missed analyst expectations in its fourth quarter earnings report. Amazon reported a profit of $1.00 per share against analysts’s expectatins of $1.56. Its share price subsequently fell to a low of $545.97 from a closing share price of $635.55.

Source: scmp