Alibaba Group Holding Ltd shares rose to a record high on Tuesday after the Chinese e-commerce company reported strong second-quarter results and said it would invest for the long term to expand its customer base.
Shares rose as high as $105.05 in pre-market trading and have settled around the $104 range midday.
We delivered a strong quarter with significant growth across our key operating metrics,” – Jonathan Lu CEO
Spending Spree May Not Yet Be Over
Alibaba stated that they would continue their spending and acquisitions in order to increase their user base.
These investments are geared toward adding more customers and converting them into users of Alibaba’s core e-commerce businesses, as well as increasing the number of products and services Alibaba offers, Joe Tsai, the company’s executive vice chair, said.
Mobile Revenue Was Up
Mobile revenue was more than ten times higher than in the same period last year and accounted for 22 percent of total revenues, as Alibaba continued to ramp up the money it makes from sales conducted via mobile phones.
12-Month Price Targets for Alibaba Group
Current price targets range anywhere from $106 up to $122 with some wild predictions coming in at over $200/share in the next 18 months.