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Here's Why Alibaba (BABA) Stock Popped After Earnings
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Shares of Alibaba Group (BABA - Free Report) opened more than 3% higher Tuesday after the company released its financial results for the quarter ended December 31, 2016. The Chinese e-commerce giant posted earnings of $1.09 per share and revenues of $7.669 billion.
Alibaba’s impressive revenue figure surpassed our estimate of $7.483 billion and represents growth of 54% on a year-over-year basis. The company cited the strength of this year’s Singles’ Day shopping holiday and pointed to growth in several newer business areas.
For example, revenue from core commerce increased 45% year-over-year to $6.708 billion, but it was the year-over-year growth in Alibaba’s cloud computing and digit media and entertainment units that really impressed. Those segments grew 115% and 273%, respectively.
“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,” said Alibaba CEO Daniel Zhang.
Alibaba further detailed its “New Retail” concept, saying that it will help the company tap into the entirety of China’s $4.8 trillion retail sector by breaking down the distinction between online and offline commerce. To that end, Alibaba has started partnering with several different brick-and-mortar retailers.
Alibaba also laid out its plans for international expansion, saying that its cross-border and international consumer businesses saw “robust” growth and it will “continue to invest in the commerce infrastructure in emerging markets… to expand merchant and consumer opportunities and capture the long-term growth potential of cross-border and local trade.”
The growing e-commerce also adjusted its 2017 full-year guidance from revenue growth of 48% to revenue growth of 54%.
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Here's Why Alibaba (BABA) Stock Popped After Earnings
Shares of Alibaba Group (BABA - Free Report) opened more than 3% higher Tuesday after the company released its financial results for the quarter ended December 31, 2016. The Chinese e-commerce giant posted earnings of $1.09 per share and revenues of $7.669 billion.
Alibaba’s impressive revenue figure surpassed our estimate of $7.483 billion and represents growth of 54% on a year-over-year basis. The company cited the strength of this year’s Singles’ Day shopping holiday and pointed to growth in several newer business areas.
For example, revenue from core commerce increased 45% year-over-year to $6.708 billion, but it was the year-over-year growth in Alibaba’s cloud computing and digit media and entertainment units that really impressed. Those segments grew 115% and 273%, respectively.
“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,” said Alibaba CEO Daniel Zhang.
Alibaba further detailed its “New Retail” concept, saying that it will help the company tap into the entirety of China’s $4.8 trillion retail sector by breaking down the distinction between online and offline commerce. To that end, Alibaba has started partnering with several different brick-and-mortar retailers.
Alibaba also laid out its plans for international expansion, saying that its cross-border and international consumer businesses saw “robust” growth and it will “continue to invest in the commerce infrastructure in emerging markets… to expand merchant and consumer opportunities and capture the long-term growth potential of cross-border and local trade.”
The growing e-commerce also adjusted its 2017 full-year guidance from revenue growth of 48% to revenue growth of 54%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>