China e-commerce giant Alibaba (BABA) reported mixed fiscal second-quarter results before the market open Friday as earnings easily beat views while revenue came in light. Alibaba stock wavered, and was up as much as 4.5% in premarket action before pulling back.
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Alibaba earnings came in at an adjusted $1.40 per share, beating analyst estimates of $1.06. It reported revenue of $12.4 billion, missing forecasts of $12.45 billion, for its fiscal second quarter ended Sept. 30. Revenue rose 54% from the year-ago period.
Alibaba also curbed its full-year revenue growth forecast by 4%-6% amid "fluid macro-economic conditions."
Baird analyst Colin Sebastian said the Alibaba earnings report was better than feared given macroeconomic conditions in China.
"We believe management's fiscal 2019 guidance cut was largely anticipated by investors, and potentially less severe than originally feared," Sebastian wrote in a note to clients. He has a rating of outperform on Alibaba stock and price target of 215.
Alibaba Earnings: Stock Performance
Alibaba stock danced around the break-even point before ultimately slipping. On the stock market today, Alibaba stock dropped 2.4% to close at 147.59.
Several analysts recently lowered their price target on Alibaba stock, which this week began rebounding from a 17-month low set on Tuesday.
Revenue from cloud computing increased 90% from the year-ago period to $825 million. Mobile monthly active users reached 666 million, up 5% from the prior quarter.
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The post Alibaba Earnings Mixed As Revenue Guidance Cut, Stock Wavers appeared first on Investor's Business Daily.
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