Alibaba Nearly Doubles Facebook Profit ahead of IPO (Bloomberg)
Alibaba Group Holding Ltd., China‚??s e-commerce company closing in on its own initial public offering (IPO), posted revenues and profits indicating that it may surpass the valuation of Facebook when it went public. Yesterday, Alibaba‚??s revenue rose 60 percent to $1.73 billion in Q2, according to a report released by Yahoo! Net income was reported at $707 million, more than doubling the $273 million from the previous year. That means second-quarter profits at Alibaba doubled Facebook‚??s profits on less revenue. Currently in talks to list on a U.S. market, initial valuations of the company have reached as high as $120 billion — about $16 billion more than Facebook‚??s valuation during its IPO. And if Alibaba can continue posting numbers like those in Q2, it‚??ll provide investors with all of the confidence they need to pile in when shares go public.