Earnings season is in full swing and these three e-commerce and tech giants are set to release reports for the past quarter. Here’s what to expect from Alibaba Group Holding Ltd (NYSE:BABA),Amazon.com, Inc.(NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT).
Alibaba Group Holding Ltd
Alibaba is expected to post its Q3:16 results on Thursday, January 28 before the market open. Analysts expect the company to post revenues of 35.3 billion RMB and earnings per share of 6.09 RMB for the quarter, compared to last year’s revenues of 26.2 billion RMB and earnings of 5.05 RMB per share.
For this quarter, all eyes will be on the company’s Singles Day sales, as the company reported record numbers for this November 11 shopping event. Other focuses include the company-owned Tmall and Toaboa, which are ranked #1 and #2 in e-commerce sites by Chinese consumers; mobile segment GMV as consumers shift to mobile shopping; and Global Online Retail. Analysts expect to see revenue growth in the upcoming report and are generally bullish regarding management and the company’s overall strategy.
On January 14, 2016, analyst Mark Mahaney of RBC Capital reiterated an Outperform rating on the company with an $85 price target. The analyst commented on the upcoming earnings, stating, “We believe…BABA can sustain premium growth rates in its key Retail segment (80% of revenue) for the foreseeable future. BABA also continues to demonstrate very high levels of profitability.” He is also optimistic on the company’s “effective management team and a sound long-term strategy,” thanks to Alibaba’s “non-retail revenue streams in China, international expansion and a series of major strategic investments.”
According to TipRanks’ statistics, out of the 22 analysts who have rated the company in the past 3 months, 21 gave a Buy rating while 1 remains on the sidelines. The average 12-month price target for the stock is $95.15, marking a 35% increase from where shares last closed.
Leave A Comment