One of the companies raking sales is Alibaba which is doing better than most companies. This e-commerce and cloud giant is one of the most profitable. Though it is worried that the threat posed by the U.S. and its trade war with China.
Last Thursday, the company logged in excellent sales and earnings that were the top forecasts to date. Total income is up by 35% from a year back. Details reveal that an increase in mobile users peaked too.
Martin Garner, Chief Operations Officer of CCS Insight, said that Alibaba getting 34% of growth in the COVID-19 pandemic is no mean feat. This nothing compared to the fact the e-commerce giant can equal the GDP of the Netherlands to make a point. To able to get this growth at his pace is nothing but phenomenal, reported CNN.
However, despite the gains, there will still be setbacks like 2% on Thursday. In 2020, a 20% uptick is in play.
The pandemic has caused many hardships and uncertain conditions that are very evident. In China, there is the recovery going on because of how the pandemic is getting managed, said CEO Daniel Zhang of Alibaba when he was interviewed by analysts.
Although even with the good news, the online goods store is not confident how the Trump administration will regard it. Recent attacks on TikTok and WeChat are proof of the uncertain environment in the pandemic, cited New York Times.
One problem is how these forces will reach and how ultimately the tension will determine how the firm will fare.
Looking at the latest U.S. policies and how Chinese companies will be regarded is very fluid. Each change will be met with adapting to any new relevant rules.
But compared to other companies, Alibaba is not into retail in the U.S. market. Though small companies are using cloud hosting services for their digital commerce, key competitors are Amazon, Microsoft, and Google owned Alphabet are in the booming cloud market, mentioning that it posted a 60% surge from last year.
Zhang called it cloud services that help American companies. Having one of the biggest e-commerce platforms, the companies' goal is to focus on American brand support for all aspects of business. Access to the platform will increase profitability as well.
He added that global trade is always there and that Alibaba will make it easy to do business when everything is within Chinese and American interests, though the current conditions need to be minded.
According to U.S. Secretary of State Mike Pompeo, who caution American companies to be careful of Chinese technology. He warned that information and other relevant IT are on cloud networks owned by Alibaba and similar Chinese companies, noted Bloomberg.
Zhang said that Alibaba can make an impact on the Chinese cloud market though it is in its infancy, and can surpass the United States.
One of Alibaba's competitors is JD.com, which gained more sales of 35%, compared a year ago. Other e-commerce sites in China have gained headway as well, confirmed Wall Street Journal.
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