Alibaba Group Holding Ltd (NYSE:BABA)’s already one of the biggest sensations in the business-world and there’s even more potential for China’s e-commerce talent. Stifel Financial Corp representative, Scott Devitt, informed that they are looking forward to more than 40% increase in the company’s productivity and a price target above $110, according to CNBC. The best part about Alibaba Group Holding Ltd (NYSE:BABA) is that the company hasn’t gotten out of China’s borders.
“We expect 45% gross merchandise value growth and 49% revenue growth and expect an upside on both estimates. […] Our price target’s $112 a share and, of course, that would be updated based on performance in the quarter,” informed Scott Devitt.
After tomorrow’s market close, Alibaba Group Holding Ltd (NYSE:BABA) will unveil its financial performance and there could be a serious one-day spike in stock price. On the edge traders have already their palms sweaty as there’s huge volatility associated with the stock since the market has digested little fundamental information about the company. Now, regarding getting out of home-country, Jack Ma’s strategy seems brilliantly planned. So far, Alibaba Group Holding Ltd (NYSE:BABA) has been focused only on the Chinese market up to the point of near monopolistic powers in its core activities. However, Ma informed that much of the success was due to the fact that there is bad infrastructure in China and his company managed to bypass that well. Probably, in direct competition with Amazon.com, Inc. (NASDAQ:AMZN), Alibaba Group Holding Ltd (NYSE:BABA)’s financials would have severely been damaged. In any case, analysts expect good news from anywhere Jack Ma’s business operates, especially in the world’s most populous country.
“I would say both. I mean, China, if you look at GDP growth, obviously is one of the fastest growing markets. As it relates to e-commerce, China also is very quickly becoming the largest market and is going to be significantly bigger than the US within a couple of years. So, maintaining or closely maintaining its share in China will be a big growth driver for Alibaba,” said Scott Devitt.
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