The stock of the Chinese e-commerce giant has gone up after being traded at a lower share price for weeks.
According to ZDnet.com, on October 30, 2015 Alibaba Group Holding’s shares went up by 1.69% and are currently being traded at a share price of $83.61. The reason for the fluctuation in the share price was that the Vice President of the Chinese e-commerce company Yu Sicheng stated that mitigating data and to manage cloud security the company is taking measures to overcome them as security fears have surfaced, mostly when the Chinese tech vendors are dealing with the U.S. customers.
This push has made the value of the company cross the $200 billion mark. The e-commerce giant has been trading on low levels for the past few weeks but after the announcement of the earnings results the company has been observing an upward trend. It is expected that if the company maintains this increasing trend, the investors are believed to get good returns in the future. During this time which was better October 22 and October 29, 2015, the shares managed to get an overall gain of 18%. After the release of the second quarter earnings of the present fiscal year, Alibaba’s stock has seen a significant and steady rising trend.
On October 29, 2015 the stock of the Chinese e-commerce dropped 0.16% and was being traded at $82.22. A one year high share price of Alibaba was registered at $120 while a one year low was observed at $57.20. Against analysts’ estimate of $0.54, the company reported adjusted earnings per share of $0.57. Due to this adjusted EPS, the stock of the e-commerce giant price went up almost 4%; along with the stock price, the revenue generation on the basis of quarter over quarter and year over year went up as well and performed well. While analysts had predicted a rather normal growth, the revenue generation surpassed their expectations and went up by more than 5%.
The China based company shows solid growth in the future as well. The most important reason for this growth is the mobile market which makes up 60% of the total gross merchandise value. Since there is more competition in the mobile market, Alibaba has managed to get its way in as well and plans to generate and capture as much of the market as it can as internet giants will be more attracted and will want to acquire as much of the mobile market.
The e-commerce company, with its aggressive investment strategy, will help it generate a good amount of income for Alibaba. The problems that it is currently facing in its local market can also be eradicated if the company decided to expand and move to other international markets as well.
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