Since its debut as a public company a couple of months ago, this Chinese e-commerce company’s price has ranged from 82.81 - 120.00. It is in high-growth mode and just made investors happy with a great earnings report.
Alibaba (BABA)
from Cabot China & Emerging Markets Report
Alibaba (BABA) is still a very young issue—only public for nine weeks—but it’s behaving nicely. The October surge from 84 to 100 needed just four days of consolidation before BABA ran higher, meeting resistance at 120.
Alibaba recently released a terrific quarterly report, with sales growth accelerating to 54% and earnings of 45 cents per share meeting expectations. Moreover, all of the sub-metrics looked good, too (value of products bought on its various marketplaces rose 49%, while active buyers leapt 52%). The stock has reacted well, pushing higher nearly every day as big investors build positions. This is obviously a big idea, and likely a stock that most institutions must own.
There are tons of stories about deals that Alibaba may be cutting with other companies, but very little skeptical commentary. BUY .
Paul Goodwin, Cabot China & Emerging Markets Report, www.cabot.net, 978-745-5532, November 6 and 13, 2014