Alibaba Group will publish their Q2 Earnings Report on Thursday (11 August 2016) before the US markets are open. The Chinese e-commerce giant executed initial public offering (IPO) at the New York Stock Exchange in 19 September 2014, and managed to raise $25 billion which was recorded as one of the largest IPOs in the history of tech industry.
The initial stock price was set at $68 per share, and climbed as high as $119 per share, 75% higher than IPO price.The uptrend did not last long, however, as the BABA stock price fell to $58.97 per share in September 2015. Since then, Alibaba stocks has been trying to breach the strong resistance level right at the IPO price.
Q2 2016 Earnings Report
The drop in Alibaba stocks were mostly caused by the company’s failure to meet expectations in previous quarterly earnings seasons. China’s weakening economy was also influential over the stock price. In an effort to earn back investors’ confidence after two disappointing data, the company offered its investors financial guidance which would start this quarter. Alibaba reported that they expect their yearly revenue to increase by 48%.
For tomorrow’s report, stock analysts are forecasting Alibaba to report $0.62 earning per share. Although the company failed to meet expectations in previous reports, Alibaba analysts emphasize that the company’s commission revenue has increased in last quarter, thanks to the ever-increasing gross merchandise by Tmall.
Alibaba stocks are trying to breach the IPO price since it has fallen below. They are now keeping up with the global trends and adapt their operations accordingly. It is likely of the company to have learned the reasons of their failure in previous quarters, and with the aid of major sales investments in the first quarter of current fiscal year, Alibaba stocks carry the potential to initiate a strong uptrend which may continue until the end of the year.