Alibaba (BABA) Singles Day GMW Slight Disappointment, But Long-Term Thesis Intact - Baird

November 11, 2016 11:21 AM EST
Get Alerts BABA Hot Sheet
Price: $96.12 -0.16%

Rating Summary:
    36 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
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Baird analyst Colin Sebastian weighed in on Alibaba (NYSE: BABA) following Singles Day data, saying while GMV was a slight disappointment there was no change in their long-term positive thesis.

Sebastian commented, "At the conclusion of its Singles Day shopping event, Alibaba announced total GMV of $17.7B (+24% Y/Y from $14.3B last year). While this suggests a significant deceleration in growth from 60% a year ago, we note that absolute volume of sales is impressive, far exceeding the combination of both Black Friday and Cyber Monday online sales in the U.S. We would characterize volume growth as a slight disappointment, despite the generally positive commentary from Alibaba executives, and continue to highlight that GMV is a somewhat misleading metric, and recommend that investors look at volume trends directionally."

The firm maintained an Outperform rating and price target of $110.00

For an analyst ratings summary and ratings history on Alibaba click here. For more ratings news on Alibaba click here.

Shares of Alibaba closed at $94.34 yesterday.

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