Wednesday has turned out to be a great day for two tech stocks, GoPro Inc (NASDAQ:GPRO) and Alibaba Group Holding Ltd (NYSE:BABA). GoPro Inc (NASDAQ:GPRO) went up by around 6.7% as it closed on Wednesday, on the other hand Alibaba Group Holding Ltd (NYSE:BABA) went up by around 4.8% on Wednesday. ‘TheStreet’ article discuss about the reasons behind the rally of these tech stocks on a single day.
Ambarella Inc (NASDAQ:AMBA) is the chip supplier to GoPro Inc (NASDAQ:GPRO) and Ambarella has reported a very strong earnings report. Ambarella also suggested that its first-fiscal quarter revenue would be as high as $64 million to $68 million, whereas the street was expecting that to be around $59 million. This huge boost in a main supplier stock has boosted GoPro Inc (NASDAQ:GPRO) stock as well on Wednesday.
Many analysts point at different catalyst for GoPro Inc (NASDAQ:GPRO) growth in the days to come. Some of this catalyst includes, Hero4+ Upgrade cycle, further expansion into media industry, possible entry into cloud space, etc.
On the other hand, Alibaba Group Holding Ltd (NYSE:BABA) was facing a lot of criticisms and issues in the last few days. Since the beginning of 2015, the stock dropped more than 15% and was alleged on Tuesday that Alibaba Group Holding Ltd (NYSE:BABA)’s websites has ‘fake’ orders. As another blow to Alibaba Group Holding Ltd (NYSE:BABA), Taiwanese government has announced that they are planning to throw Alibaba Group Holding Ltd (NYSE:BABA) out of their country in 6 months.
Amid all these issues and problems, Alibaba Group Holding Ltd (NYSE:BABA) announced on Tuesday that it would open a data center in Silicon Valley. This came as a huge boost for Alibaba Group Holding Ltd (NYSE:BABA) stock despite all the negative points against the company.
The data center due to set up in California by Alibaba Group Holding Ltd (NYSE:BABA), will be the Chinese e-Commerce giants first global expansion for its data center business. The only problem is that Alibaba Group Holding Ltd (NYSE:BABA) will not be directly colliding with Microsoft Corporation (NASDAQ:MSFT) and Amazon.com, Inc. (NASDAQ:AMZN) in the cloud operations space.
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