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Published: Sat, November 04, 2017
Culture | By Antonia Gonzales

Alibaba raises FY forecast as sales growth accelerates in Q3

Alibaba raises FY forecast as sales growth accelerates in Q3

As reported by the firm, about 8.2 billion dollars was gotten exceeding the projected total revenue. Traditionally, this is the day that breaks every one of Alibaba's records.

Needham analyst Laura Martin raised her price target on Alibaba to 215 from 190 and maintained a buy rating.

Alibaba saw some impressive growth in its worldwide business. In 2015, well before Amazon got serious about becoming an online supermarket, Alibaba began offering fresh produce and meats for sale on its Taobao and Tmall marketplace sites. That should please investors, as the company will spend heavily on logistics as it expands into new types of retail.

Baird analyst Colin Sebastian raised his price target on Alibaba to 210 from 190 and maintained an outperform rating.

The biggest e-commerce business in China is now estimating a rise for its revenue of between 49% and 53% for its ongoing fiscal year, following its acquisition of Cainiao its logistics arm.

Alibaba cloud is the best example.

IBD'S TAKE:Alibaba is one of eight stocks now on the exclusive IBD Leaderboard list of top-performing stocks.

"Alibaba continues to deliver superb growth in core commerce, driven by strong user growth and improving personalization", Chung wrote in a note.

Alibaba shares, which have more than doubled this year, slipped 0.2% to 185.71, in afternoon trading on the stock market today. JD.com is also a leader in China e-commerce but with a different business model than Alibaba.

This year, JD.com plans to use Tencent's popular WeChat messaging app (the Chinese app has almost a billion monthly active users) to arrange payment.

Singles' Day - a Chinese shopping holiday that encourages young consumers to celebrate the fact that they are single by buying clothes and home products - falls each year on November 11. The Alibaba festival towers over the USA shopping events Black Friday and Cyber Monday.

In the second quarter, net income attributable to ordinary shareholders was 17.67 billion Chinese yuan or $2.66 billion, an increase of 132 percent from 7.62 billion yuan in the same quarter of 2016.

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