BABA

Alibaba Group Holding Limited

118.73
USD
0.94%
118.73
USD
0.94%
73.28 229.64
52 weeks
52 weeks

Mkt Cap 322.73B

Shares Out 2.72B

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Why Alibaba Stock Is Soaring Today

What happened Shares of the Chinese e-commerce company Alibaba Group Holding (NYSE: BABA) spiked this morning after the company reported fourth-quarter results that beat analysts' consensus top- and bottom-line estimates. The tech stock was up by 12.7% as of 11:36 a.m. ET. So what Alibaba reported non-GAAP (adjusted) earnings per American depository share (ADS) of $1.25 in the quarter, which was a 23% drop from the year-ago quarter but far above Wall Street's consensus estimate of $1.10 for the quarter. Additionally, Alibaba's revenue increased 9% in the quarter to $32.1 billion, which was better than the average analyst estimate of $29.9 billion. Alibaba CEO Daniel Zhang said in a press release that the company "delivered on the goal of serving one billion annual active consumers in China this past quarter" and that the company achieved a record gross merchandise volume (GMV) of $1.3 billion for the full year, despite "macro challenges" and supply chain issues. Now what Alibaba's management said that the "risks and uncertainties arising from COVID-19" mean that the company can't provide any guidance for the upcoming year. China has a strict "zero-COVID" policy that has resulted in continual lockdowns of cities and businesses. Some of those shutdowns have actually been good for the company because of its massive e-commerce business. While it didn't give any forward outlook, management did say that in fiscal 2023 it will "focus on generating sustainable, high-quality revenue growth and optimizing our operating cost structure" amid "these uncertain times." With Alibaba beating both top- and bottom-line estimates in the quarter, despite macroeconomic and panedemic-related disruptions, it's not surprising why investors were pushing up the company's share price today. 10 stocks we like better than Alibaba Group Holding Ltd. When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Alibaba Group Holding Ltd. wasn't one of them! That's right -- they think these 10 stocks are even better buys. *Stock Advisor returns as of April 27, 2022 Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

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