Alibaba regains top online vendor title
ALIBABA surpassed its US counterpart Amazon as the world's biggest e-commerce company yesterday as the Hangzhou-based company reached the threshold of US$470 billion in market value.
Shares of Alibaba rose over 1.2 percent in mid-session yesterday to US$184.32, hitting a market capitalization of US$472.1 billion. Meanwhile, the stock of online retailer Amazon shed 0.87 percent to US$982.35 a share, making the company’s market value at US$471.9 billion.
Analysts said Alibaba regained its title as the world’s biggest e-commerce company after over two years thanks to its incredible performance this year.
As one of the top performers on the New York Stock Exchange, Alibaba has gained over 100 percent since January, while Amazon rose nearly 30 percent.
The Chinese company’s stock soared 12 percent in the past two months after it announced better-than-expected quarterly earnings in August.
Alibaba’s net profit jumped 96 percent to more than US$2.1 billion year on year in the first fiscal quarter ending June, beating market expectations.
Moreover, the number of active buyers on Alibaba’s retail platform climbed to 466 million, accounting for about one third of the Chinese population.
Investment banks J.P. Morgan and Morgan Stanley raised their long-term price targets for Alibaba from US$190.17 to US$205.2 respectively after the release of its quarterly report.