Alibaba Group Holdings Ltd. (BABA) shares are up over 9% in mid-morning trade on Thursday. The company’s stock is soaring as annual investor day kicks off. The company announced an increase in revenue growth forecasts for the full year, with the company forecasting full-year sales growth of 45% – 49%.
The updated forecast is 10 percentage points higher than expected.
The company’s stock has performed well this year, rising more than 40% and over 60% in the past year. The announcement puts Alibaba on track to have its strongest yearly sales increase in company history.
CFO Maggie Wu states, “Despite having a larger base, we continue to accelerate our revenue growth.”
The company’s rapid expansion and move into digital media, entertainment and cloud computing has allowed the company to continue its high revenue growth. CEO Daniel Zhang reaffirmed the company’s $1 trillion GMV goal for 2020. The company’s GMV last year was up 18% to $547 billion.
Founder and executive chairman Jack Ma will speak to investors on Friday along with executive vice chairman Joe Tsai. The event will be streamed live and will also include a webcast replay. The event will be at 3:45 a.m. EST on Friday.
Alibaba Group Holdings Ltd. (BABA) Faith in Chinese Economy
Alibaba’s announcement also supports the company’s faith in the Chinese economy continuing to grow strong.
The investor presentation helped Yahoo (YHOO) rally on Thursday. Yahoo owns a stake in Alibaba. The struggling company is expected to announce the go-ahead for Verizon (VZ) to acquire the company on Thursday. Yahoo’s stock rallied 8% on the news that Alibaba expects to continue its strong growth. Verizon may cut as many as 2,000 jobs from Yahoo once the acquisition goes through. The cuts account for 15% of the company’s workforce.
Yahoo will still maintain its Alibaba and Japan holdings in a new company called Altaba. Yahoo has a 15% stake in Alibaba.
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