Dr. Stoxx Says Alibaba Is A 'Sell The News' Play
Carr noted that last quarter, Alibaba's earnings report fell a nickel short of expectations, causing shares to slide from $120 to a low near $95.
"This time things should be different," Carr told Benzinga via email. "Remember Singles Day? It beat revenue expectations by over $1 billion, with a 60 percent year over year sales growth, which has had the analysts all scrambling to raise consensus targets."
Carr added that Alibaba should easily report a top-line beat, but investors should still pay attention to the firm's monetization rates as there is some concern that it will be lower than it was a quarter a quarter.
Bottom line, "this may be a sell the news play."
In Thursday's premarket, Alibaba reported EPS of $0.81, beating expectations of $0.74.
Latest Ratings for BABA
|Nov 2016||Brean Capital||Maintains||Buy|
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