Alibaba (NASDAQ:BABA) surged 14% in the quarter after rising throughout last week. It closed at exactly $200.00 last Friday, Nov. 29. Its HK listing, which was HK$176/share, raised another $13 billion for Alibaba. The improved cash liquidity and strong demand for BABA stock in Hong Kong attracted stock buyers.
The HK listing, which gave a modest 2% discount to its ADR stock price, drew buyers and ended up helping the company’s market capitalization. The limited stock sale will drive a post-IPO rally. This benefits the current BABA stockholders.
In a few months’ time, Alibaba will also split its shares, which increases the stock’s liquidity on the market. Provided that Alibaba reports strong quarterly revenues and profits in the next few quarters, the stock is likely to trend higher in early 2020.
Strong Long-term Prospects
Alibaba offers diversification in international markets. It is also a dominant e-commerce player in China. Most of China’s consumer is on both the desktop and mobile Alibaba properties. So, as consumer demand trends upwards in the next few years, Alibaba stands to capture most of that market.
Previously, BABA stock traded alongside the developments of the U.S/China trade war. Yet Alibaba is clearly headed towards becoming the biggest e-commerce giant worldwide. The stock could potentially trade another 30% higher, to say, $300. As Alibaba expands beyond China into other markets, its revenue growth will continue in the double digits.
