NEW YORK (TheStreet) --Shares of Alibaba (BABA) were lower on above average trading volume early Wednesday afternoon despite the company reporting better-than-expected 2016 second-quarter financial results.

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

Revenue came in at $5.14 billion, topping Wall Street's projected $5.03 billion.

"It was a very solid quarter across the board," Bloomberg Intelligence senior media analyst Paul Sweeney said during Wednesday's "Bloomberg Markets: Americas."

The strength of the Chinese consumer, despite the stagnate Chinese economy, impressed investors, he added.

"The Chinese consumer continues to be a very strong component of the economy, we saw that with the e-commerce numbers. The core fundamental Chinese e-commerce story, I think, investors feel pretty good about still," Sweeney explained.

He also commented on the strength Alibaba saw from its cloud business during the quarter.

"The revenue in the cloud computing business was up about 130% year-over-year, and they continue to forecast very strong growth there," Sweeney stated.

Investments made by Alibaba into cloud services will increase as the growth of these services ramps up, he noted.

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.

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