Norton Global’s Clients Buoyed as Recommendation Alibaba Beats Forecast Expectations

Posted October 30, 2015 by DavidLam

Norton Global Asset Management the Hong Kong Based Provider of Asset Management Services positioned many of its clients in Alibaba back on 24th August when the stock was $65.80 they closed on 26th October at $76.35

Alibaba’s latest Q2 2015 earnings diminished however the company, which was predicted as likely having a difficult quarter, actually beat expectations with a near $3.5 billion in revenue along with adjusted earnings per share of $0.57. Alibaba said revenue had increased 32 percent year-on-year to beat analyst expectations of $3.39 billion, as polled by the Wall Street Journal.
Norton Global’s senior analyst believes Alibaba is still a hold and said “We are currently advising clients to hold onto the stock, even though it jumped almost 10% on the back of the latest results, we still predict a slow steady rise and for now will stay with our hold position.”
Alibaba actually warned there maybe a slowdown last month, however it still managed a reasonable 28% year-on-year increase and reached $112 billion in GMV (gross merchant volume) during the quarter.
Alibaba CEO Daniel Zhang said that he saw the quarter as a “great” one “with strong growth across the board and particular outperformance in mobile.”
He continued “We continued our efforts to drive healthy GMV growth, deliver an unparalleled consumer experience and help quality merchants do business on our platform. We are winning in mobile and remain focused on our top strategic priorities, including internationalization, expanding our ecosystem from cities to villages, and building a world-class cloud computing business,”
The company did warn that they saw Mobile as something they need to take on as it makes more money from desktop-based users. The growth of smartphones and sales generated by them means it is of significant importance. Mobile devices were responsible for 62% of GMV on Alibaba’s China marketplaces, which equates to approximately $1.65 billion in monetary terms giving an increase of 183 percent year-on-year. Alibaba also stated that it has an active monthly client base of 346 million users on mobile devices, which equates to a rise of 59% year-on-year and 13% percent quarter-on-quarter.
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Last Updated October 30, 2015