Alibaba shares were down by as much as 0.31% during the beginning of the week despite news of the Chinese e-commerce company recording more than $25 billion in sales from its Single’s Day shopping event which took place over the weekend.
The holiday which is celebrated in China every year is known to be held with a huge shopping event where shoppers are offered extensive deals and discounts on any type of products from clothing or cosmetic items to even electronics.
Alibaba began offering Single’s Day discounts back in 2009 in celebration of the country-wide holiday and has then recorded a surge in their sales with the stock’s market value continually rising over the years.
This year, however, Alibaba’s Single’s Day offers and discounts were offered to customers worldwide resulting in billions of dollars in sales within the first couple minutes of the shopping event. Orders processed by Alibaba was also reported to have reached from 250,000 to as much as 325,000 over the duration of the event with more than 1.48 billion transactions being recorded by the company while its total delivery orders exceeded more than 812 million.
Alibaba’s Singles Day was kicked off with a star-studded event in China which was attended by global personalities as a part of Alibaba’s own efforts in making its shopping event more global. Alibaba chief executive officer Daniel Zhang stated that they currently have plans to make the event more global in the coming months starting taking the gala outside the country on an unspecified date.
Also part of their efforts in taking the shopping event outside China was also offering similar deals on hundreds of brands through Alibaba’s Southeast Asia platform Lazada which was acquired by the company more than a year ago.
For this year’s Singles Day, Alibaba offered numerous offers and discounts on products from over eighty-two brand including Nike and Xiaomi. Sales of the e-commerce company were estimated to have grown by 39% compared to last year’s Singles Day.
The stock of the e-commerce giant which has risen up by 109.99% this year was last seen trading at $185.84 and is down by 0.31%. However, Alibaba remains to be one of the best-performing stocks of the year under the technology sector with the stock remaining above its 50-day moving average basically all year. During its most recent earnings report, Alibaba was able to post earnings of 8.57 yuan per share largely beating most analyst estimates of 6.86 yuan per share. Alibaba is also adjusted its full-year earnings growth forecast to a range of 49%-53% from having been previously forecasted at a rate of 45%-49% growth.
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