Alibaba Group Holding (NYSE: BABA)
Alibaba Earnings & Technicals
On Tuesday before the market opened, Alibaba Group Holdings announced Q3 earnings that topped expectations and gave shares in boost in the pre-market session. The online commerce company announced adjusted third quarter earnings of $1.30 on $7.57 billion (53.25 billion yuan) in revenue while analysts were looking for $50.1 billion yuan in revenue. They attribute the strong earnings to Singles’ Day, an annual shopping day in China on November 11, that jumped more than 32% from the same period last year. Currently analysts have an average price target of $ 120.82.
Looking at the 5-minute chart above you will see that shares gained a nice pop following earnings as shares hit pre-market highs of $103.80 after closing Monday at $98.41, marking a 5.4% jump in value. Look for resistance at $103.80 but if we get over that we could see a nice pop. Support should be met at $101.10 and $100. Keep in mind that shares will more volatile than normal but should provide plenty of trading opportunities throughout the day. Check out these links for more information on Warrior Trading and the penny stock trading strategies we implement in their chat room!
CEO Comments
“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, Chief Executive Officer of Alibaba Group. “The 11.11 Shopping Festival featured Alibaba at its best, integrating commerce, entertainment and social engagement, all happening globally at record scale. We are driving the age of ‘New Retail,’ which leverages big data and innovation to provide a seamless online and offline experience for nearly half a billion mobile monthly active users. This retail transformation will make it even easier and more efficient for brands and retailers to engage with these consumers anywhere, anytime.” –Businesswire
Analyst Comments At Deutshe
Interviews with large brands and digital ad agencies lead us to lift FY17 rev growth back to 51%; a level we last envisioned back in late-summer. Management sounded clearly constructive in mid-Dec meetings. Strong monetization of e-commerce continues to deliver operating leverage, partially offset by spend on content, regional expansion, rural Taobao and FMCG. Cloud revenue should see triple digit growth (DBe +120% YoY). We expect Dec Q revenue of RMB49.9bn, +45% YoY, in-line with consensus; We assume non-GAAP EBITDA margin of 46.7%, and net margin of 37.4%, with upside risk. Last Close USD 96.00, (Alan Hellawell)
Company Profile
Alibaba Group Holding Limited is a holding company. The Company is engaged in online and mobile commerce through offering of products, services and technology that enable merchants, brands and other businesses to transform the way they market, sell and operate in the People’s Republic of China (the PRC or China) and internationally. It operates through the provision of online and mobile commerce and related services segment. The Company provides retail and wholesale marketplaces available through both personal computer and mobile interfaces in the PRC and internationally. Retail marketplaces and services operated by the Company include the China online shopping destination (Taobao Marketplace); the China brands and retail platform (Tmall); the China group buying site that offers products by aggregating demand from consumers through limited time discounted sales (Juhuasuan), and the global consumer marketplace targeting consumers (AliExpress). –GoogleFinance
