Alibaba’s Quarterly Results Top Estimates – Long Position Suggested
Shares of Alibaba Group Holding Ltd added 4.3% premarket to $105.50 after the Chinese e-commerce giant reported much better than expected fiscal second quarter earnings.
The Hangzhou, China-based company registered earnings per share of $0.79 for the last quarter, which was nine cents better than market’s $0.70 estimate. Alibaba’s revenue soared 55% from last year to $5.14 billion, betting analysts’ view of $5.05 billion.
The company reported revenue from core commerce surged 41%, while cloud computing revenues rose 130%. Additionally, revenue from digital media and entertainment jumped 302%, while innovation initiatives and other revenue rose 78% from the year-ago period.
Buy Limit at 98.00, Take profit at 100.00, Stop loss at 97.00