The e-commerce giant's margins will likely remain under pressure, but its work to innovate has produced a series of business initiatives, like Hema stores, video and payments, that have long ramps to growth, they said.
Chinese e-commerce giant Alibaba Group Holding Ltd. reported a 41% rise in quarterly revenue, the slowest growth since 2016, reflecting tightening purse strings as the world's second-largest economy cools.
The group's net profit reached ¥33.1 billion in the December quarter, more than the ¥22.1 billion yuan it had projected and the ¥28.8 billion estimate in a Bloomberg poll.
It was a strong quarter for Alibaba backed by a record Singles Day shopping event for the most part and that should at least provide some encouragement for stocks ahead of the opening bell later. Most of Alibaba's revenue comes from the fees it charges buyers and sellers to trade goods and services on its online marketplaces, such as Tmall and Taobao.
Revenue from its cloud business rose 84 per cent to 6.6 billion yuan, while sales from its digital entertainment and media business rose 20 per cent to 6.5 billion yuan. The firm had projected for a ¥119.4 billion in sales for the quarter.
Alibaba did not issue any guidance for the fiscal fourth quarter.
"Our resilient operating and financial performance is a direct reflection of our persistent focus on better serving our growing base of almost 700 million consumers across retail, digital entertainment and local consumer services", he said in a statement today.
Tsai said that Chinese consumers' consumption is still strong and is expecting it to grow over the next 5-10 years.
China's economic growth in 2018 slowed to its weakest in nearly 30 years, with growth expected to decline even further this year.
Anticipating headwinds from economic uncertainty, Alibaba had lowered its revenue outlook for its financial year ending March even before the top sales season by 4 to 6 percent to the range of between 375 billion yuan and 383 billion yuan ($54.4 billion to $55.6 billion).
Alibaba's e-commerce business drives the company, but the company has built a cloud business that rhymes with what Amazon has done with Amazon Web Services.