Alibaba (NYSE:BABA) Up as Daniel Zhang is Named CEO

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Close-up shot of Apple iPhone 5S with Alibaba online store application on screen.

Alibaba (NYSE:BABA) shares were up 10% this morning after the company named a new CEO. COO Daniel Zhang will replace Jonathan Lu as CEO, the company revealed on Thursday. Zhang has been with the company since 2007 where he served as CFO for Alibaba’s Taobao unit. He took over as COO for Alibaba in September of 2013.

Executive chairman Jack Ma stated that Zhang is a “proven international business leader” and that he has the confidence of the entire management team.

Zhang will take over as CEO on Sunday. His predecessor Jonathan Lu will now serve as vice chairman.

Alibaba’s revenue beat expectations at $2.81 billion, which was a 45% increase year over year.

In a recent statement, Zhang said the company experienced a solid transition to mobile platforms over the last 12 months. Alibaba’s mobile take rate was down slightly last quarter because of the Chinese New Year, during which most of the country was on holiday. Despite this, Zhang expects the company’s mobile take to continue growing, and he is confident Alibaba can reach the same rate on PC as well.

Roughly two-thirds of the company’s sales come from Taobao, Alibaba’s consumer-to-consumer marketplace. Revenue is earned through marketing services and advertising.

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