Alibaba (BABA 138.05, +12.41 +9.88%) notched new all-time highs earlier in the session today in light of the company’s guidance which was announced at its Investor Day.
Specifically, to a gasping crowd CFO Maggie Wu announced guidance for BABA FY 2018 annual revenue growth of 45-49%, more than 10% higher than select street views. Management highlighted last year’s 56% revenue growth as a “not apples to apples” comparison, citing the Youku and Lazada deals which had not yet fully realized integration. Taking out those deals, revenue growth last year was in the range of 44-45%.
The company also announced at $1 trillion Gross Merchandise Value goal for FY2020. At $547 billion in FY17, BABA’s GMV looks equally impressive when you take into account that transactions via Alibaba account for about 11% of total Chinese retail sales, according to the company.
Mobile monthly active users have grown to about 507 million as of March 2017 with 80% of total revenues coming from mobile. Additionally, as of FY17 the company’s Mobile take rate has surpassed that of PC.
In Cloud, BABA highlighted that when Amazon (AMZN) Web Services was “at our size,” the growth rate was not as strong as at AliCloud.
The presentation was very impressive, but it appears that the sticking point remains the FY18 revenue growth guidance. Today’s stock move sees peers EBAY +0.66% and AMZN +0.03% modestly higher.