Alibaba's Revenue Rises as Profits Boosted by Investments

Alibaba, China's big name in e-commerce, entertainment, and tech, saw its revenues go up by 5% to about $33. 7 billion in the recent quarter. This was the result of a 63% jump in net profits to $6. 25 billion. But it's not all straightforward - some of this boost came from changes in the value of their equity investments and improvements in their income from operations. When you look at the group’s preferred way of measuring profits, called non-GAAP net income, it actually dropped by 9% compared to the same time last year. This is what you get when you don't include those investment changes. Digging into specifics, the digital media and entertainment group’s revenue hit $811 million, which is a 1% decrease from last year. The losses in this area are getting smaller thanks to Youku, a streaming platform, making more money from ads and getting better at spending on content. The media segment lost $25 million compared to $201 million last year. Over the first six months of this financial year, it's lost about $281 million, which is more than double what it lost the year before. Eddie Wu, Alibaba’s CEO, acknowledged that they're putting money into improving what they offer to customers and teaming up with other companies to boost their payment and logistics services. Their cloud business is doing well too, with revenues from public cloud products growing rapidly and AI stuff bringing in even more. Alibaba’s performance is like a weather forecast for China’s economy, which has been a bit bumpy but is now getting a lift from government actions. With shares on both the Hong Kong and New York Stock Exchanges, Alibaba’s stock is up in both places - 16. 8% in Hong Kong and 21% in New York.