Alibaba Group Holding Limited (NYSE:BABA) reported revenues and earnings that beat analyst expectations on Wednesday. The company posted EPS of 5.26 yuan, which is an increase from 3.61 yuan last year. Revenue increased 55 percent to 34.29 billion yuan from 22.17 billion a year ago.
“Beyond the strong performance of our core commerce business, we are pleased with the continued rapid growth of our cloud computing business,” said Daniel Zhang, CEO of Alibaba Group. “We also see huge potential in our newly integrated digital media and entertainment unit.”
Market research firm eMarketer announced that Alibaba was supposed to overtake Baidu in September as the largest player in the country’s digital advertising market. The firm expects Alibaba’s market share to rise by four percent points to 29 percent, their digital ad revenue is expected to rise by 54 percent this year.
Last month Alibaba announced a deal with Steven Spielberg’s Amblin Partners to produce films for global audiences. The company completed a deal for its cloud computing arm to utilize Advanced Micro Devices technology to improve graphic processing in its data centers. Cloud revenue growth is expected to continue to grow.