Tuesday Morning’s Market Insights: Alibaba Group Holding Ltd (BABA), Yahoo! Inc. (YHOO), GW Pharmaceuticals PLC- ADR (GWPH) and Agenus Inc (AGEN)
Alibaba Group Holding Ltd (NYSE:BABA) is up 8.32% in pre-market trading up to $82.70 after the Chinese e-commerce company released better-than-expected second quarter earnings. The company posted revenue of $3.49 billion, a 32% year-over-year increase and higher than analysts’ expectations of $3.35 billion. Revenue derived from the mobile segment more than doubled year-over-year to $1.66 billion, comprising 61% of total revenue. The company posted earnings of $0.57, beating estimates of $0.54. Gross Merchandise Volume, which is seen as a key metric for ecommerce platforms, was lower than last year but this was expected by management due to low order values. Investors and analysts were relieved that the strong earnings report confirmed that fears surrounding the slowdown in the Chinese markets over the summer were overblown. As of this writing, of the 24 analysts polled by TipRanks have weighed in on Alibaba, 22 are bullish while 2 are staying on the sidelines. The average 12-month price target for the stock is $90.93, marking a 19% potential upside from where shares last closed.
Yahoo! Inc. (NASDAQ:YHOO) jumped 7.63% in pre-market trading up to $35.24 after Alibaba released earnings this morning. Yahoo still owns 15% of Alibaba and the Chinese ecommerce company has been struggling to regain its footing since its record breaking IPO. Alibaba beat expectations for both revenue and earnings, allowing many investors to breathe a sigh of relief that the company escaped the Chinese economy’s summer slowdown unscathed. Yahoo has been trying to spin-off its remaining stake of Alibaba but is still in the process of doing so. Alibaba also jumped more than 8% in pre-market trading, increasing the value of the impending spin-off for Yahoo. Although the IRS has not definitively ruled whether or not the deal will be taxed, Yahoo has announced that they will move forward with the spin-off, indicating confidence that it will not be taxed. As of this writing, 26 analysts on TipRanks have weighed in on Yahoo. The majority, 17, are bullish on Yahoo while 9 remain neutral. The average 12-month price target between these 26 analysts is $41.83, marking a 25% potential upside from current levels.
GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) tumbled 3.79% down to $76.71 after the biopharmaceutical company announced that Sativex, an investigational pain treatment for patients with advanced cancer lacking adequate pain relief options made in partnership with Otsuka, failed to meet its primary endpoint in Phase 3 trials. Sativex did not prove to be superior than its placebo in the trial, even though pre-specified subgroup analyses of pooled patients in the U.S. did achieve the primary endpoint and several secondary endpoints. In light of the disappointing news, GW Pharma and Otsuka are requesting to meet with the FDA to discuss what options remain for the drug. As of this writing, all 3 analysts polled by TipRanks in the last 3 months are bullish on the company with an average 12-month price target of $141, marking a 77% potential upside from where the stock last closed.
Agenus Inc (NASDAQ:AGEN) climbed 5.21% in pre-market trading up to $5.25 after the company reported positive data on its second pivotal Phase III trial for QS-21 Stimulon, a pipeine treatment for shingles. The drug demonstrated 90% overall efficacy in combatting shingles compared to its placebo. Management acknowledged that they are pleased with the results and look forward to filing regulatory documents for the drug. Also this morning, the company posted a quarterly loss of $13.1 million for the third quarter and a loss of ($0.16) per share. However this news seemed to be overshadowed by the positive data announcement. According to the 2 analysts polled by TipRanks in the last 3 months, both are bullish on the company with an average 12-month price target of $11, marking a 120% potential upside from where shares last closed.