NEW YORK (TheStreet) -- Shares of Alibaba (BABA) were sharply higher in pre-market trading on Wednesday after the company reported better-than-anticipated earnings and revenue for its quarter ended September 30.

Before the market open, the Chinese e-commerce giant posted earnings of 79 cents per diluted share, topping analysts' estimates of 69 cents per share.

Revenue jumped 55% to $5.14 billion year-over-year and was above analysts' estimates of $5.03 billion.

"Beyond the strong performance of our core commerce business, we are pleased with the continued rapid growth of our cloud computing business. We also see huge potential in our newly integrated digital media and entertainment unit," CEO Daniel Zhang said in a statement.

Revenue from Alibaba's cloud computing segment soared 130% to $224 million compared to a year ago.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations.

But the team also finds that the growth in the company's net income has been quite unimpressive.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: BABA

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