Alibaba Group Holding Ltd (NYSE:BABA) is to announce its earnings before the bell rings on Tuesday trading session with Wall Street waiting in anticipation to scrutinize the stock or look for any inauspicious sign. It will be the first earnings report for the giant Chinese online company as a public entity. It waits to be seen the guidance Alibaba will provide as well as its plans for stock-based compensation according to CNBC Kayla Tausche.
“When I talk to investors there are two things they are really watching for in this report. One guidance but that’s pretty commonsensical given that this current quarter is Alibaba biggest quarter with singles day last year to $5 billion in transactions just in 24 hours,” said Mrs. Tausche.
Stock-based compensation is expected to cost Alibaba a great deal according to Tausche as the company seeks to retain and tap more talent that is expected to spur growth going forward. Alibaba Group Holding Ltd (NYSE:BABA) is currently the fourth valuable company in the world. The company according to CNBC Jon Frott will have to continue showing mobile momentum as well as topping up singles day if it is to stay ahead of Facebook Inc. (NASDAQ:FB) in terms of valuation.
Daily Mail Jon Steinberg argues that a number of investors will closely be watching Alibaba’s gross merchandise value which continues to be a niggling challenge at Amazon.com Inc. (NASDAQ:AMZN). Investors will look to analyze Alibaba’s profit margins considering its fierce rival in the space; Amazon has been a huge disappointment. Analyst will also seek to see if there are any signs that the company’s growth might be waning.
“Everyone is going to be looking for is gross merchandise value which is what everybody cared about at Amazon before they worried about Amazon profitability again. On the desktop, it has gone from 304 in June 13 and kind of crested up to 424 billion R&B in December and then now we are looking for 343 billion. Year over year that’s only 8% that’s a huge decline from 52% year over year growth they were showing in desktop,” said Mr. Steinberg.
Alibaba Group Holding Ltd (NYSE:BABA) mobile momentum is picking up having grown to $206 billion an increase of 275%. Steinberg expects Alibaba investors to be concerned if the company is to show signs of slow growth in mobile and desktop.
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