Alibaba (BABA) Stock: Beats Earnings Expectations

Alibaba BABA Stock NewsAlibaba Group Holding Ltd (NYSE: BABA) is having an incredibly strong start to the trading session this morning, and for good reason. The company reported its financial results for the first fiscal quarter, beating expectations and exciting investors. Of course, this excitement is turning into gains in the market. Today, we’ll talk about:

  • The earnings report;
  • what we’re seeing from BABA as a result; and
  • what we’ll be watching for ahead.

BABA Reports Earnings

As mentioned above, Alibaba is having a strong start to the trading session this morning in the pre-market hours after reporting its earnings. Here’s what we saw from the report:

  • Earnings – BABA said that net income for the fiscal first quarter came in at $1.31 million. On a per share basis, the company said that it generated a profit of $0.50. However, when adjusted for one time gains and costs, earnings came in at $1.22 per share. Unfortunately, this figure missed expectations of $1.29 per share.
  • Revenue – While earnings was a miss, revenue saw massive growth, exciting investors. During the quarter, BABA generated revenue in the amount of $11.77 billion. Analysts expected that revenue would come in around $11.74 billion.

While the company missed expectations with regard to earnings, revenue proved to be a big hit. After all, with such strong growth in revenue, the company is showing that it is capable of generating growth. As far as earnings go, earnings were eaten up by various investments made by the company. Nonetheless, investors don’t seem to mind as these investors will improve the future prospects.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Alibaba, the news proved to be overwhelmingly positive. After all, strong growth in revenue shows that the company is headed in the right direction. So, it comes as no surprise to see that excited investors are sending the stock up in the market today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (7:40), BABA is trading at $183.36 per share after a gain of $5.51 per share or 3.10% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on BABA. In particular, we’re interested in following the story surrounding the company’s continued growth as this quarter proved to be a hit. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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