Alibaba Group Holding Ltd (NYSE:BABA) announced that USD 14.3 billion (RMB 91.2 billion) of gross merchandise volume (“GMV”) was settled through Alipay on Alibaba’s retail marketplaces on November 11, 2015, making the 2015 11.11 Global Shopping Festival the largest shopping day in history. Mobile GMV settled through Alipay accounted for 68.7 percent of total GMV.1
“This day demonstrates the power of domestic China consumption, and the Chinese consumer’s strong demand for international products,” said Daniel Zhang, chief executive officer of Alibaba Group. “It also showcases how Alibaba uses big data, cloud computing and mobile innovations to create the best shopping experience for buyers and sellers.”
Key highlights from the 2015 11.11 Global Shopping Festival
- Total GMV settled through Alipay was USD 14.3 billion (RMB 91.2 billion), an increase of 60 percent compared to 2014 2
- Total mobile GMV settled through Alipay was approximately USD 9.8 billion (RMB 62.6 billion), exceeding total GMV in 2014, and accounted for 68.7 percent of total GMV
- Total mobile GMV increased by 158 percent compared to 2014
- Total number of mobile buyers on Tmall.com and Taobao Marketplace was 95 million
- Alipay processed a total of 710 million payment transactions, and processed 85,900 transactions per second at peak
- AliCloud processed a total of 140,000 transactions per second at peak
This year’s 11.11 highlighted Alibaba’s globalization strategy, allowing Chinese consumers to purchase high-quality, authentic global brands and imported goods from businesses of all sizes around the world. Key highlights include:
- More than 16,000 international brands with completed transactions
- 33 percent of total buyers purchased from international brands or merchants
- Buyers and sellers from 232 countries and regions
- Top countries selling to China included: United States, Japan, South Korea, Germany and Australia
In addition, Alibaba’s logistics partner and affiliate, Cainiao Logistics, received 467 million delivery orders during the 24-hour shopping period, more than 15 times the daily average of 30 million orders, and representing a 68 percent year-over-year increase from 278 million orders in 2014 11.11. Cainiao Logistics also generated more than 120 million e-waybills, a system created by Cainiao Logistics that shares shipping information among delivery firms, customers and merchants. As the facilitator of an ecosystem with 386 million annual active buyers, Alibaba manages the high volume of orders and packages through a robust partnership of logistics networks and delivery companies. The company also leverages proprietary data management applications and forecasting systems to ensure the delivery of hundreds of millions of packages across China and around the world. (Original Source)
Shares of Alibaba Group opened today at $82.28 and are currently trading down at $79.85. BABA has a 1-year high of $120 and a 1-year low of $57.20. The stock’s 50-day moving average is $71.38 and its 200-day moving average is $77.73.
On the ratings front, Alibaba has been the subject of a number of recent research reports. In a report released today, Deutsche Bank analyst Alan Hellawell maintained a Buy rating on BABA, with a price target of $98, which represents a potential upside of 19.1% from where the stock is currently trading. Separately, on November 9, Suntrust Robinson Humphrey’s Robert Peck maintained a Buy rating on the stock and has a price target of $100.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Alan Hellawell and Robert Peck have a total average return of 31.2% and 10.5% respectively. Hellawell has a success rate of 55.6% and is ranked #144 out of 3840 analysts, while Peck has a success rate of 58.6% and is ranked #235.
The street is mostly Bullish on BABA stock. Out of 25 analysts who cover the stock, 22 suggest a Buy rating and 3 recommend to Hold the stock. The 12-month average price target assigned to the stock is $93.53, which implies an upside of 13.7% from current levels.