Alibaba shares soared after the company reported market-beating earnings in the three months ended December, with investors content with a record amount of spending by the company in the 2018 calendar year, hoping that it will spur future growth.
The Chinese e-commerce giant posted its slowest revenue growth since 2016 in its fiscal third quarter, but net income beat estimates. The stock closed more than 6 percent higher in New York on Wednesday and edged up further in after-hours trading.
It has had to contend with a slowing Chinese economy and the ongoing U.S.-China trade war. One area the market was focused on is spending by the company, with some analysts thinking that Alibaba could reign in expenditures because of the tougher operating environment.