NEW YORK (TheStreet) -- Alibaba Group Holding (BABA) - Get Report shares are soaring on Tuesday morning after the e-commerce giant released strong second quarter fiscal 2016 earnings results that beat analysts' estimates.
Earnings for the latest quarter ended September 30 came in at 57 cents a share, beating analyst projections of 54 cents a share.
Revenue was $3.49 billion, surpassing forecasts of $3.39 billion.
In the same period the year before, the company earned 45 cents a share on revenue of $2.74 billion.
"This was a great quarter for Alibaba Group, with strong growth across the board and particular outperformance in mobile," CEO Daniel Zhang stated. "We continued our efforts to drive healthy GMV growth, deliver an unparalleled consumer experience and help quality merchants do business on our platform."
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio commented on Alibaba's earnings saying: "This is a true blowout with an amazing growth in mobile. The Chinese consumer is alive and well and spending on Alibaba."
Overall, revenue soared 32% compared to last year's period, boosted by an outperformance in mobile.
Year-over-year, the company's gross merchandise volume rose 28% with mobile revenue more than doubling. The company's cloud computing revenue also increased and its monetization rate went up to 2.42% from 2.33%.
These results come at a time when there are concerns about China's economic health.
Separately, TheStreet Ratings team rates ALIBABA GROUP HLDG as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
We rate ALIBABA GROUP HLDG (BABA) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: BABA