One of the biggest e-commerce companies in the world, Alibaba, had recently disclosed its annual revenue growth and the results are exemplary. The figures are way ahead of analysts’ expectations and in return, pushing 2018’s annual revenue growth expectations to 49%.
The impeccable growth had pushed Alibaba’s stock on early US trading today; the positive outlook for 2018’s revenue had also provided a support for the surging stock; the company’s US shares were up by 13% to $142.34. The company’s cloud, media, and marketing will definitely boost the company already-powerful performance; the 45%-49% estimate for next year’s annual revenue growth is close to the company’s ongoing 40%-plus performance per annum.
Alibaba’s Annual Performance
The enormous Hangzhou-based tech company has provided the market with a booming 62% increase on their share in 2017, and rallying by 87% over the past 12 months. Alibaba’s Thursday performance is on track to be the biggest one-day gain and overtaking
The company has managed to build a whopping 56% of revenue increase from last year; the company’s Southeast Asian e-commerce group that was recently consolidated into Alibaba’s number last April had also shown a significant change, according to the CFO Maggie Wu.
More Alibaba Figures
According to CEO Daniel Zhang, the company can potentially hit $1 trillion of gross merchandise volume or GMV by 2020 from 2016’s $547 billion; while CFO Wu contemplated on the company’s long run saying that they could potentially hit the 45% to 49% revenue growth by next year. According to reporter Isabella Zhong, "Wu said it’s not an apples-to-apples comparison given the consolidation of video site Youku and Southeast Asian e-commerce platform
CEO Daniel Zhang believes that the company’s main asset was its ability to collate data, and analyzing them at the same time. By that current method, the company had provided better customer service, better figures for advertisers and businesses. Zhang said that "If we use one sentence to describe Alibaba," he said. "Alibaba is an economy, driven by big data."
Analysts Thoughts on Alibaba
According to an analyst at Jefferies, Jessie Guo said that "The company will continue building its ecosystem based on data technology with core businesses supported by payment, logistics, data management platform and cloud," Guo’s buy rating for the tech company remained, and its price target at $122. However, the stock closed yesterday at $125.64 per share.
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