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Is Alibaba Stock Set For A Post Earnings Rally? Alibaba Group Holding Ltd (NYSE:BABA)

Alibaba Group Holding Ltd (NYSE:BABA) is set to report its Q1 2018 earnings on August 17. Can BABA stock edge closer to the $200 mark?


Chinese e-Commerce giant Alibaba Group Holding Ltd (NYSE:BABA) is scheduled to report its June quarter earning on Thursday, August 17, before the market opens. There are increased expectations from the Chinese company to deliver a strong performance in the latest earnings. At its investor day event, the management stated that they expect to see a heavy 45%-49% revenue growth this year. The company expects to reach a whopping $1 trillion dollar in gross merchandise volume by 2020. In spite of the company's massive size, the company never fails to amaze with its impressive growth. Trading action at the BABA counter has not seen much action in the lead up to the earnings announcement, except for the last trading session, which saw Alibaba stock trade climb nearly 2%. In fact, the stock was trending downwards momentarily after hitting an all time high of $158.84 on August 7. Alibaba stock has shot up like Chinese crackers this year, gaining over 76% in the year-to-date, outperforming the Nasdaq Composite (INDEX:COMPX) by a factor of more than 4. After the remarkable guidance, the question now is, will Alibaba Group trump Wall Street estimates? Is BABA stock setting up for a strong post earnings rally?

Alibaba Q1 2018 Earnings Wall Street Estimates

The current Wall Street consensus expects the Jack Ma founded company to report non-GAAP earnings of 93 cents a share, up from an EPS of 74 cents in Q1 2017, a 25.67% YoY growth. On the top line front, Wall street analysts...