Alibaba hikes forecast after sales get Singles Day boost

Alibaba crushed estimates for the December quarter on Tuesday, reporting a 54% surge in revenue off sales generated from China's biggest shopping day of the year.

For the quarter, Alibaba reported revenue of $7.6 billion, well above the $7.3 billion forecast by analysts, according to S&P Global Market Intelligence. Earnings per share were $1.30, blowing past estimates of $1.13.

Alibaba also revised its fiscal year guidance, saying it expects 53% revenue growth for 2017, up from 48%.

"Our robust December quarter demonstrates the strength of the Chinese consumer and Alibaba’s ability to create value across our vast ecosystem," said Daniel Zhang, CEO of Alibaba Group, in a statement.

Shares of Alibaba rose 3%.

Alibaba's revenue surge was driven by another strong sales performance on Singles Day, the biggest shopping event in China. Alibaba says it posted $1 billion in sales within the first five minutes, and raked in $17.8 billion in 24 hours.

Alibaba also continues to make big gains in its cloud computing business. Revenue from that business more than doubled during the quarter, to $254 million.

Although most of its business is done in China, Alibaba is pushing for more global reach. During the World Economic Forum, Alibaba revealed it will be one of the lead sponsors of the Olympic Games through 2028.

Follow Brett Molina on Twitter: @brettmolina23.