Chinese retailer Alibaba has reported big profits once again, showing 56% growth in quarterly returns. Net earnings rose by 94% to 14.7 bln yuan or $2.2 bln in the second quarter year-on-year.
This is very much different from U.S. retail company Walmart, which has issued figures of 23% slump in net profit.
Experts believe this data demonstrates that there’s a global turn towards e-commerce and a change of focus towards Asia.
There’s been a great deal of excitement relating to Alibaba among investors this year. The shares rose 5% on the results, and this year they grew 81%. And though these results are regarded as extraordinary in the West, there are experts thinking that growth could continue for quite some time.
As for Walmart, their store traffic is up, and income was down, to some degree due to the company spending funds to catch up with his competitor Amazon.
Walmart's U.S. part upped sales by 1.8% compared to the April-June of last year. However, its net earnings went down 23.2% as the company was spending a lot on e-commerce and there was also a one-time debt payment of $788 mln.
Both Alibaba and Walmart are rivals with Amazon, which has shown good performed last year as well. But while the two American companies are trying to directly outdo each other, Chinese company’s CEO says that US is not the market he counts on for Alibaba’s expansion.