Chinese e-commerce giant Alibaba Group issued its first annual sales forecast, predicting a 48% rise in fiscal year 2017, boosted by recent acquisitions and plans for expansion.
The expected growth comes after major acquisitions of the video streaming service Youku Tudou and private e-commerce company Lazada Group, based in Singapore, within the past year. Excluding the consolidated revenues from Youku and Lazada, the growth would be over 36%, Alibaba said.
Analysts polled by S&P Capital Global Market Intelligence predict about 38% growth.
Shares rose 3.57% Tuesday to $78.14.
The forecast was part of an 11-hour analyst day in Hangzhou, China with executive chairman Jack M, and other executives addressing about 400 investors.
Ma said the key to the company’s long term growth will be expanding into international markets and investing in big data. Ma told investors he aims to serve 2 billion people, create 100 million jobs around the world and have a valuation equivalent to the GDP of the fifth-richest country in four years.
“We have the world’s largest retailer, but we are not a retail business, we are a data business”, Ma said.
Alibaba’s gross merchandise value (GMV) will rise 22% in FY2017. Alibaba stated it would no longer provide quarterly GMV numbers, in line with its goal to branch past being solely an e-commerce company.
A representative from Alibaba was not available for comment Tuesday morning.
Both GMV and revenue growth are in line with projections made from financial services holding company Stifel, which maintains a Buy rating on Alibaba with a target price of $88.
Possible risks to future growth include difficult entering international markets, concentrated voting ownership and Chinese geopolitical concerns according to Stifel. China has criticized Alibaba for illegally allowing the sale of fake and forbidden goods.
“The revenue guidance and intra-quarter GMV performance indicate solid momentum at the company in our view,” Stifel stated in a report. “In addition to solid GMV growth, we believe solid take rate performance driven by mobile is a contributor”.
Fuente: USA Today.
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