Summit Research Incrementally Positive on Alibaba (BABA) Amid Succesful Singles Day

Summit Research analyst, Henry Guo, published a note on Alibaba (NYSE: BABA) detailing statistics from this year's singles day holiday. The analyst said the event showcased Alibaba’s dominant market position in China, as well as its strong technology infrastructure, and rapidly improving fulfillment logistics capabilities.

GMV on 11/11 reached RMB91.2B, up 59.7% Y/Y compared with expectations for 50% growth that day. Alibaba Group’s partner Sunning also had a strong performance on the day with online transactions up 358% Y/Y.

Mobile accounted for 68% of total GMV on the day, well above the September quarter’s 61.7% and 42.6% on 2014 November 11th.

On this year’s Double-Eleven, Alipay facilitated 710 million transactions for over 200 financial institutions around the world (in comparison, PayPal had 1.22B transactions from July-September 2015).

According to Alibaba, GMV on Tmall Global exceeded last year Double-Eleven’s whole day GMV in just 1 minute and 45 seconds. Over the first 70 minutes, consumers over 200 countries globally had transactions on Tmall Global platform.

"We are incrementally positive on BABA shares after this one-day shopping event, considering the strong GMV growth momentum and increasing mobile penetration," Guo said.

No change to Buy rating or $92 PT

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 $79.85 yesterday.

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