Alibaba's Enthusiastic Users Push E-Commerce Presence, Revenue Surges

Chinese e-commerce company Alibaba's second-quarter net income fell 39% as it spent more on acquiring businesses and investing in mobile and marketing.
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Chinese e-commerce company Alibaba's second-quarter net income fell 39% as it spent more on acquiring businesses and investing in mobile and marketing, but its revenue surged 54% on strong user demand. Alibaba operates popular e-commerce platforms Taobao and Tmall in China. The company went public in September in an initial public offering that was the largest ever. Its platforms account for some 80% of Chinese online commerce. For the three months ended September 30, net income was 45 cents a share, just as expected. Revenue rose to $2.7 billion, which is better than expectations. Chinese e-commerce is growing fast. Online spending by Chinese shoppers is forecast to triple from its 2011 size by 2015. Beyond that, Alibaba has said it plans to expand into emerging markets and, eventually, into Europe and the U.S. The website does not compete with its merchants or hold inventory. Instead, it serves as a conduit that links buyers and sellers of all kinds.