Alibaba Market Cap Breaks Through $500 Billion Mark
Shares of Alibaba nearly doubled last year and today's record high continued the e-commerce giant's stock price upward.
Shares of Alibaba Group Holding Ltd. (NYSE: BABA) closed at a record-high level of $195.53 per share on Wednesday, propelling the company's market cap past $500 billion for the first time.
Although still lagging the giant Amazon.com Inc. (Nasdaq: AMZN) with a market capitalization of about $650 billion, and just below Facebook Inc. (Nasdaq: FB) at $540 billion, the Chinese e-commerce giant has outpaced both of them the past year.
Shares of the Hangzhou-based company almost doubled last year, up 94 percent. This year, the stock is up 10 percent. There are multiple growth drivers, including its core e-commerce business, its cloud business, and its international expansion.
Alibaba has proved its e-commerce dominance in China. The core commerce revenue grew 63 percent year-over-year in the September quarter. In the Single's Day event, Nov. 11 (11/11), the e-commerce giant generated 168.2 billion yuan ($25.3 billion) in sales in just 24 hours. Looking forward, the e-commerce giant aims to reach RMB 6 trillion RMB ($900 billion) in annual gross merchandise volume by 2020. It also strives to serve 2 billion consumers annually by 2036 worldwide.
Alibaba's cloud computing business, which competes with Amazon.com and Tencent Holdings Ltd., also doubled its revenue in the September quarter, up 99 percent. In addition, the company has been aggressively expanding its presence in Asia. In June 2017, Alibaba announced a deal to pay approximately $1 billion to raise its stake in Lazada from 51 percent to 83 percent. In August 2017, Alibaba led a $1.1 billion investment in Tokopedia, an Indonesian e-commerce company. Hema Xiansheng supermarket, Alibaba's online-to-offline grocery business, previously announced it will open 30 physical stores in 2018.
Alibaba will report its financial results for its third fiscal quarter and hold a conference call to discuss the results on Feb. 1.