Alibaba is a Chinese company I have been following since the first day they went public. It is also a company I have been trading with long before it went public, and shares have skyrocketed since then.
The Chinese giant is expected to report earnings on Thursday and investors must expect to see strong growth.
s growth will come in from online sales and cloud. According to Chinas National Bureau of Statistics, Alibaba`s retail sales growth jumped 41% YoY in June from 30% YoY in June. E-commerce penetration reached 18,6% in June this year.
The E-commerce giant is expected to benefit from improved spending trends in China. China Commerce is expected to grow 38% to $4,9 billion, and cloud computing & internet infrastructure is expected to grow a whopping 106,5% YoY to $369 million.
Just like Amazon, cloud computing is a growth engine for Alibaba, which is a $1 billion revenue run rate for the company. The company is improving thanks to its target marketing and bigger push on its mobile site.
S&P 500 has gained about 2,5% in the past three months while Alibaba has jumped nearly 30%. Shares are up about 60% in just six months. That`s strong growth.
The FactSet consensus if for revenue of $7,1 billion, which is up from $4,6 billion in the year earlier period.
Alibaba is expected to report earnings on 08/17/2017 before market open. Get ready for higher earnings and strong growth.
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