Alibaba (BABA) is set to report earnings tomorrow before the market opens with a conference call to follow at 7:30am ET.
Current Capital IQ consensus stands at EPS of $1.22 on Revenue of $12.02 bln.
Shares of Alibaba are down over 30% over the past 5 months as a slow down in China has weighed in on sentiment. BABA is the world's largest fintech player and has recently consolidated its platform around logistics. It is also the biggest cloud producer in China.
Singles Day November 11
This marks the 10th Anniversary of the event. Total GMV in 2017 was $25.3 bln. In comparison Black Friday in the U.S. was $5 bln, Amazon Prime Day was $1 bln. Investors would like to see commentary and perhaps a forecast for sales which BABA has yet to offer.
Ma to Step down as Chairman
Tariffs
BABA has limited exposure to the U.S. as an end market but does receive some of its merchandise abroad. It stated back ion August following Q2 results that it was not seeing an impact from tariffs but market participants would like to see an update on this topic.
Recent price target reductions from analysts:
10/29- Nomura lowered to $202 from $224
10/23- Macquarie lowered tgt to $225 from $240.
10/22- Benchmark lowered tgt to $220 from $245.
TECHS:
BABA- Down 22% y/y; Forward P/E 19.8x
