Alibaba( BABA, $201.87) beats earnings estimates, on online sales boost in pandemic period
Alibaba Group Holding Co. reported fourth quarter earnings that surpassed analysts’ expectations. The pandemic-induced lockdown seemed to boost online consumer spending.
The e-commerce behemoth’s diluted non-GAAP earnings for the three months ending in March, came in at $1.30 per share, exceeding the Street's estimate of around 86 cents per share.
Revenue increased +22% year-over-year to $16.144 billion, also beating analysts' estimates of a $15.28 billion.
Cloud computing revenues surged +58% to a record $1.725 billion.
"The pandemic has fundamentally altered consumer behavior and enterprise operations, making digital adoption and transformation a necessity", said CEO Daniel Zhang.
Meanwhile, potential risks to China shares trading on U.S. exchanges have emerged following the recently passed Holding Foreign Companies Accountable Act by U.S. Senate lawmakers. The bill would require non-U.S. companies listed on domestic exchanges to prove they are "they are not owned or controlled by a foreign government.”
BABA's Stochastic Oscillator remains in oversold zone for 3 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
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Notable companies
The most notable companies in this group are Amazon.com (NASDAQ:AMZN), PDD Holdings (NASDAQ:PDD), Alibaba Group Holding Limited (NYSE:BABA), JD.com (NASDAQ:JD), eBay (NASDAQ:EBAY), Chewy (NYSE:CHWY), Vipshop Holdings Limited (NYSE:VIPS), Wayfair (NYSE:W), Just Eat Takeaway.com N.V. (OTC:JTKWY), Revolve Group (NYSE:RVLV).
Industry description
The internet retail industry includes companies that sell products and services through the Internet. With more and more consumers using online retailers, the companies have seen a big increase in the use of their services. Some of the companies in the group are focused on selling business-to-business products and services. Others sell business-to-consumer products and services. Internet retailers offer a wide variety of products like books, apparel, and electronics. Some companies even specialize in only one or two categories. One potentially critical factor for players to thrive in this space is the quality and speed of product delivery. This requires an investment in efficient distribution networks. Things like logistics are important factors in the success in the extremely competitive industry. For a company to stay relevant in the industry it must have effective pricing strategies and upgraded websites. The websites must be easy to navigate and engaging for customers. In addition to the revenues generated from straight sales, internet retailers can generate revenue from subscription fees and advertising. Amazon.com, Inc., Alibaba Group, and JD.com are some of the global leaders.
Market Cap
The average market capitalization across the Internet Retail Industry is 33.65B. The market cap for tickers in the group ranges from 622 to 1.87T. AMZN holds the highest valuation in this group at 1.87T. The lowest valued company is RBZHF at 622.
High and low price notable news
The average weekly price growth across all stocks in the Internet Retail Industry was -2%. For the same Industry, the average monthly price growth was 1%, and the average quarterly price growth was 8%. RERE experienced the highest price growth at 6%, while LGCB experienced the biggest fall at -47%.
Volume
The average weekly volume growth across all stocks in the Internet Retail Industry was -15%. For the same stocks of the Industry, the average monthly volume growth was -31% and the average quarterly volume growth was -17%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 62
P/E Growth Rating: 67
Price Growth Rating: 59
SMR Rating: 80
Profit Risk Rating: 90
Seasonality Score: 11 (-100 ... +100)