Before today's opening bell, the Chinese e-commerce giant reported adjusted earnings of 79 cents per share, topping analysts' estimates of 69 cents per share. Revenue rose by 55% year-over-year to $5.14 billion and beat expectations of $5.03 billion.
"It's a good quarter," Wedbush Securities Managing Director Gil Luria said on CNBC's "Squawk Box" on Wednesday morning. The revenue growth was particularly "impressive," he said.
However, while its core e-commerce business is doing very well, its other initiatives in media, cloud and mobile innovations are not doing so well, he noted.
"Their core e-commerce ... is covering up for very significant losses in all those businesses. So they're going to have to balance that shift to those businesses with the need to maintain profitability," Luria stated.
Currently, one of the main concerns investors have with Alibaba is the health of China's economy, especially in light of the U.S. presidential election next week, Luria noted.
"If our election leads to any trade disruptions between the United States and China, both ways, that could be a disrupter to Alibaba. They have a decent sized business selling to U.S. consumers through AliExpress. And their Chinese consumers through Tmall do buy American goods," he explained.
AliExpress is Alibaba's online marketplace that offers factory prices on products in small quantaties, vs. the larger quantities purchased on Alibaba.com. Tmall is Alibaba's online marketplace that was set up to help international brands sell products to the Chinese consumer.
Separately, 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.
TheStreet Ratings team rates Alibaba as a Hold with a ratings score of C. The primary factors that have impacted the team's rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
You can view the full analysis from the report here: BABABABA data by YCharts