Alibaba Tops Revenue Estimates, but Shares Fall. Is This a Great Opportunity to Buy the Stock?
Shares of (NYSE: BABA) fell following mixed fiscal fourth-quarter earnings results that saw the Chinese e-commerce giant handily top analyst revenue estimates. The stock has had a difficult past five years, with its shares cut in half over that period. Let's look at the company's most recent results and see if a turnaround could be in the cards.
Fourth-quarter revenue rose 7% to $30.7 billion, which topped analyst estimates calling for about $30.4 billion. The company's largest segment -- comprising its e-commerce sites Taobao and Tmall -- grew revenue 4% to $12.9 billion. The segment saw orders and gross merchandise value (GMV) on its platform grow by double-digits.
The e-commerce segment has seen increased competitive pressure over the past few years, especially from Pinduoduo, owned by PDD Holdings. As a result, Alibaba has invested in being more price competitive to help drive customer growth. Its segment EBITA (earnings before interest taxes and amortization), however, fell 1%.
Source Fool.com
Alibaba Group Holding Ltd ADR Stock
The stock is one of the favorites of our community with 43 Buy predictions and 2 Sell predictions.
With a target price of 109 € there is a positive potential of 49.93% for Alibaba Group Holding Ltd ADR compared to the current price of 72.7 €.
