58.com Inc (NASDAQ: WUBA)
58.com Inc. (WUBA), an online marketplace for local merchants and consumers of China company on Sunday reported positive third quarter unaudited financial results. Total Revenues were $212.9 million a 196% increase on third quarter 2014.
58.com Inc. CEO Comments
“We are pleased to report strong third quarter results with our topline growing faster than expected,” commented Mr. Michael Yao, Co-chairman and Chief Executive Officer of 58.com. “Our core classifieds business continued to grow rapidly as it acquired more traffic and merchants and increased in size and scale. Since our acquisition in March 2015, Anjuke’s traffic and topline growth accelerated, validating our vision and demonstrating our ability to efficiently integrate and grow other platforms within our ecosystem. 58 Home recently closed US$300 million fund raising from Alibaba, KKR and PingAn and is now in a better position to take advantage of the massive market opportunities that are emerging. Last week we announced the spin-off of our consumer-to-consumer used car platform Guazi, which is off to a great start with Mark Yang and his management team. Finally, we will continue to deepen the integration of Ganji as we work to provide our users with a superior experience.” PR Newswire
WUBA Technical Analysis
WUBA gapped up in price yesterday to $59.00, up from the prior day’s close of $58.10, which is a 2% increase on the favorable news. Taking a look at the daily chart, we can see the last time WUBA traded at this price level was on July 31st, when it closed at $59.39. WUBA has been in an upward trend ever since September 28th when it traded at lows of $40.01. It will be interesting to see if WUBA can break $60 and hold above it with this gap up. If $60 can break and hold, the next significant resistance level would be the $65 level. WUBA has a float of 75.97 million shares and is trading right at the average daily trading volume. WUBA did reach pre market highs of $61.25, but gave back $2.25 at the open, or equivalent to 4%. For trading purposes, my entry point would have been $59.10 looking for a move to $60. My stop loss would have been $58.90, fearing anything below that and the stock would start to fill in the gap up.
58.com Inc. operates an online marketplace for local merchants and consumers in the Peoples Republic of China. Its online marketplace enables local merchants and consumers to connect, share information, and conduct business. The companys online marketplace contains local information in approximately 395 cities in various content categories, including housing, jobs, used goods, automotive, pets, tickets, yellow pages, and other local services. It offers membership services, such as merchant certification and listing benefits, as well as display of online storefronts; and online marketing services comprising listing services, such as real-time bidding and priority listing, and marketing services through collaboration with third party Internet companies. The companys online marketplace also provides merchants with a marketing channel to reach a broad and targeted local consumer base. 58.com Inc. was founded in 2005 and is headquartered in Beijing, the Peoples Republic of China. Yahoo Finance