Alibaba Group Holding (NASDAQ: BABA)
Before the market opened on Thursday, Alibaba Group Holding ($BABA) announced Q2 earnings that smoked analyst estimates and sent shares flying in the premarket.
The ecommerce giant announced earnings per share of $1.29 on $8.29 billion in revenues while analyst were looking for $1.04 on $6.58 billion in revenues. They also had an increase in monthly active users to 549 million, up 3.8% for the quarter.
Shares hit all time highs of $195 in the premarket following the earnings release.
As you can see in the 5-minute chart above, shares made a big jump following the second quarter earnings release that beat analyst expectations. We currently have premarket highs of $195 but have since pulled back and are currently trading in the $190 range.
Depending on where shares open at we will want to watch a couple of different levels including $193 and yesterdays high at $188.88. There was some consolidation between $191 and $193 in the premarket so we’ll want to see it break through there if we’re gonna try for premarket highs.
Expect heavy resistance at premarket highs but if prices can make it through there then I would imagine $200 would be the next big stop.
If you’re looking to trade BABA today make sure to play it smart. Shares will be volatile with large swings so make sure to manage your risk properly.
“We had an outstanding quarter. Our consumer insights and technology innovation were the key drivers behind our customer value proposition across the Alibaba economy,” said Daniel Zhang, Chief Executive Officer of Alibaba Group. “We are seeing the early results from our efforts to integrate online and offline with our New Retail strategy, and consumers have benefited from access to high quality products, improved customer experience and the tremendous convenience of shopping anytime, anywhere.”
Alibaba Company Profile
Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the People’s Republic of China and internationally. The company operates in four segments: Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives and Others.
It operates Taobao Marketplace, a mobile commerce destination; Tmall, a third-party platform for brands and retailers; Rural Taobao program that enables rural residents and businesses to sell agricultural products to urban consumers; Juhuasuan, a sales and marketing platform for flash sales; Alibaba.com, an online wholesale marketplace; Alitrip, an online travel booking platform; 1688.com, an online wholesale marketplace; and AliExpress, a consumer marketplace.
The company also provides pay-for-performance and display marketing services through its Alimama marketing technology platform; and Taobao Ad Network and Exchange, a real-time bidding online marketing exchange in China. In addition, it offers cloud computing services, including elastic computing, database, storage and content delivery network, large scale computing, security, and management and application services, as well as big data analytics and a machine learning platform through its Alibaba Cloud Computing platform; Web hosting and domain name registration services; and payment and escrow services, as well as develops and operates mobile Web browsers.
The company provides its solutions primarily for businesses. Alibaba Group Holding Limited has strategic collaborations with Driscoll’s and Thai Union/Chicken of the Sea to launch their food products to China. The company was founded in 1999 and is based in Hangzhou, the Peoples Republic of China. –Yahoo