The question on everyone’s mind these days in the e-commerce industry is whether or not Alibaba Group Holding Ltd. (NYSE: BABA) will become the next Amazon (NASDAQ:AMZN). Is it currently spending too much on growth at the expense of returns to provide a competitive challenge to the e-commerce giants? On Tuesday, Alibaba Group Holding Ltd. (NYSE: BABA) did release its second quarter report for the fiscal year 2014, before it opened for business. The e-trade organization has earnings per share of $0.45, and revenue stood at $2.74 billion. This is Alibaba Group Holding Ltd. (NYSE: BABA)’s first quarterly report, subsequent to its IPO in mid-September. The Quarterly report has the same earnings per share as expected by Thomson Reuters, but the revenue happens to be greater than the expected value of $2.61 billion. The balanced net income and Earnings per share do exclude offer based payment costs that are valued at $490 million, amortization of elusive resources of $97 million in cost and devaluation and amortization costs of $89 million. Balanced EBITDA totaled to $1.38 billion, compared with $708 million in operating income. Expenses of income rose to 27.4% of income a year prior to 33.3% in the quarter, basically because of an increment in offer based remuneration and in expansion in costs in Alibaba Group Holding Ltd. (NYSE: BABA)’s Cloud Computing and Information stage.

Deals and advertising cost rose from 6% in the year-prior quarter, to 10.4% in the September quarter, as Alibaba Group Holding Ltd. (NYSE: BABA) started to use more advertisement to advance the China retail commercial centers, at a time when extreme worldwide enthusiasm toward Alibaba Group Holding Ltd. (NYSE: BABA) upgraded the adequacy of showcasing battles. Alibaba Group Holding Ltd. (NYSE: BABA)  increased its income by 54% in contrast to the previous fiscal year, and the  stock volume in China bounced 49%, with an increment of 52% in yearly dynamic purchasers and 217 million month to month dynamic versatile clients, up 138.5% year-over-year.

The Chief Financial Officer of Alibaba Group Holding Ltd. (NYSE: BABA) stated that they need to keep on executing the centered development technique, and the key quality of the business provides for Alibaba Group Holding Ltd. (NYSE: BABA) the certainty to put resources into new activities to include new clients, enhancing engagement and client experience, extend company items and administrations, and drive long haul shareholder esteem. Financial specialists are somewhat baffled in the numbers given the buildup and trust encompassing the IPO, and the offer value development from that point forward. Some may even be thinking, whether the organization is going to be an alternate Amazon.com Inc. (NASDAQ: AMZN).

Shares were down around 0.1% in premarket exchanging Tuesday, trading at $101.61 in a post-IPO scope of $82.81 to $102.80. The high was seen at Monday. Thomson Reuters had an accord examiner value focus of around $110.00 before the results were affirmed.

The company seems to be riding high on its recent success with profit margins and revenue figures. Amazon (NASDAQ:AMZN) needs to watch out.

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