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Revenue up, net income down for Alibaba

(AP) Alibaba’s financial results in its first quarter as a publicly traded company highlight its strategy of plowing its profit back into investments, particularly in mobile commerce and marketing. The Chinese e-commerce powerhouse said net income fell 39 percent in the July-September period despite a 54 percent surge in revenue on strong user demand. The results released Tuesday show that Alibaba has a similar strategy as U.S. e-commerce retailer Amazon: Invest profit back into the company to spur long-term growth. Last month, Amazon.com Inc. reported a large loss in the third quarter despite a 20 percent increase in revenue. But the two companies operate differently. Amazon works with third-party sellers, but it also sells and distributes products directly, while Alibaba does not compete with its merchants or hold inventory. Instead, Alibaba serves as a conduit that links buyers and sellers of all kinds. It makes money from transaction fees and marketing services.