Alibaba 2nd-quarter revenue jumps by more than half

StocksAssociated Press

Chinese e-commerce company Alibaba's second-quarter net income fell 39 percent as it spent more on acquiring businesses and investing in its mobile business and marketing, but its revenue surged 54 percent on strong user demand.

Revenue topped expectations and shares rose 3 percent in premarket trading.

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Alibaba went public on the New York Stock Exchange in September in a $25 billion initial public offering that was the largest ever.

For the three months ended Sept. 30 net income after paying preferred dividends fell to $485 million, or 20 cents per share. Excluding one-time items, net income was 45 cents per share. Analysts expected 45 cents per shares, according to FactSet.

Revenue rose 54 percent to $2.74 billion, beating analyst expectations of revenue of $2.61 billion.