Alibaba Shares Rise after Better-Than-Expected 3Q15 Results



Alibaba shares rise 10%

As we saw in the previous part of this series, Alibaba (BABA) beat analysts’ expectations and delivered impressive fiscal 2Q16 results. After the earnings release, shares of this Chinese (MCHI) e-commerce giant rose 10%, the highest in the last two months.

Recently, Alibaba stock has suffered due to the troubled Chinese economy. This leading e-commerce giant witnessed a 10% fall in its stock value from last year’s successful debut, a $25 billion IPO (initial public offering) in the United States.

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Alibaba shares are now back above its IPO price of $68. Shares of Alibaba rose to $78.31 after the release of its fiscal 2Q16 results. That an increase of 32% from its low of $57.20 on September 29, 2015. Alibaba stock also rose 2.6% on October 19 following Alibaba’s announcement of its $3.6 billion offer for a stake in Youku Tudou (YOKU), a Chinese video streaming site.

Youku Tudou offers its users videos, movies, and television programs through its streaming site. Its service essentially combines Google’s (GOOG) YouTube and Netflix (NFLX).

Alibaba recently faced criticism from influential investing magazine Barron’s, which published a negative story titled “Alibaba: Why It Could Fall 50% Further.” The cover story claimed that Alibaba’s stock could fall up to 50% and that the company is making up its performance numbers.

Alibaba responded to these claims strongly by issuing a letter to the editor, citing the piece as lacking “integrity, professionalism and fairness.”

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