Motley Fool
0
All posts from Motley Fool
Motley Fool in Motley Fool,

How Alibaba Group Holding Ltd. Stock Has Gained 60.5% So Far in 2017

What happened

Shares of Alibaba Group (NYSE: BABA) rose 60.5% in the first half of 2017, according to data from S&P Global Market Intelligence.

So what

Retailers around the world have suffered mightily in 2017 as e-commerce alternatives kept up their pressure on traditional brick-and-mortar stores. Hence, Alibaba shares rose steadily from January to May, right alongside fellow e-tailing giant Amazon.com. Then Alibaba held a successful and convincing analyst day in early June, sending share prices skyward while Amazon's stubs took a small haircut due to this international competitor's apparent rise.

Image source: Alibaba.

Now what

Alibaba's sales increased by 60% year over year in the recently reported fourth quarter, and that revenue growth is accelerating. You'll see a similar growth trend in Alibaba's free cash flows. The move from physical retail stores to a new e-commerce model is very real, and it's easy to read in Alibaba's financial results.

Looking ahead, Alibaba is exploring global growth while its home-market Chinese consumer base grows more affluent and able to afford the occasional retail splurge. This company is riding powerful economic trends, not short-lived fads. Look for Alibaba to continue its market-beating growth for years to come.

BABA data by YCharts.

10 stocks we like even better than Alibaba
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Alibaba wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of June 5, 2017

Anders Bylund owns shares of Alibaba and Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy.