Personal Finance

How Alibaba Group Holding Ltd. Stock Has Gained 60.5% So Far in 2017

Alibaba logo.

What happened

Shares of Alibaba Group (NYSE: BABA) rose 60.5% in the first half of 2017, according to data from S&P Global Market Intelligence .

So what

Retailers around the world have suffered mightily in 2017 as e-commerce alternatives kept up their pressure on traditional brick-and-mortar stores. Hence, Alibaba shares rose steadily from January to May, right alongside fellow e-tailing giant Amazon.com . Then Alibaba held a successful and convincing analyst day in early June, sending share prices skyward while Amazon's stubs took a small haircut due to this international competitor's apparent rise.

Alibaba logo.

Image source: Alibaba.

Now what

Alibaba's sales increased by 60% year over year in the recently reported fourth quarter, and that revenue growth is accelerating. You'll see a similar growth trend in Alibaba's free cash flows. The move from physical retail stores to a new e-commerce model is very real, and it's easy to read in Alibaba's financial results.

Looking ahead, Alibaba is exploring global growth while its home-market Chinese consumer base grows more affluent and able to afford the occasional retail splurge. This company is riding powerful economic trends, not short-lived fads. Look for Alibaba to continue its market-beating growth for years to come .

BABA data by YCharts .

10 stocks we like even better than Alibaba

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Alibaba wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of June 5, 2017

Anders Bylund owns shares of Alibaba and Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AMZN BABA

Other Topics

Stocks

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More