.....After crossing the $100 mark, Tesla fell below the mark and stayed there for a few days, before crossing the $100 mark again. Since then, it has experienced an upward trend.
Alibaba reflects the same trend; its stock fell below $100 and stayed there for a while, before crossing the mark again. It has stayed above the $100 mark ever since.
The all-time high follows Credit Suisse Group AG (ADR)’s (CS) coverage on Alibaba, which raised its target price today to $118 from $114 and maintained its Outperform rating. The upward revision is clearly attributable to the strong quarterly results Alibaba posted yesterday.
Credit Suisse analyst Dick Wei highlighted the segments where Alibaba reflected strong growth potential. For example, he pointed out that the company’s gross merchandizing volume soared 49% in the latest quarter. He also acknowledged the improvement in the number of active users on Alibaba’s mobile platforms, which rose more than 15% to 217 million for the second quarter.
Mr. Wei was also encouraged by the increasing shift of Alibaba’s users from personal computers to smartphones and tablets, and the revenue generated as a result. The quarterly results showed that the cut Alibaba charged vendors for the overall business conducted through smartphones increased to 1.9% this quarter – an expansion of 40 basis points from the prior-year period.
However, Mr. Wei is at the same time concerned about the drop in revenues due to customers shifting to mobile phones. Alibaba charges vendors on its platforms relatively less for mobile marketing, as opposed to the marketing it provides on personal computers.
Mr. Wei concluded that Alibaba is yet to unleash its full potential, given that the majority of China’s rural markets are untapped and do not have Internet access.
http://www.bidnessetc.com/...-holding-ltd-baba-stock-pulls-a-tesla/2/
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