Alibaba's Investor Day (Day 1), Which So Far Please Analysts

Alibaba Group Holding stock continue to trade higher after hour trading, following the first day of the Asia e-commerce giant’s virtual three-day investor event, which so far pleases analysts.

Alibaba sees several major opportunities for its e-commerce Taobao and Tmall segments, given strong user growth and engagement throughout the pandemic. Alibaba is also pushing to create a more immersive and interactive shopping experience for consumers, that should drive loyalty, while pushing into high-growth areas like online luxury.

Analysts Upgrade

Loop Capital analyst Rob Sanderson also reiterated a Buy rating on Alibaba Monday, and boosted his price target to $350 from $280. He sees the virtual investor days as a catalyst for the stock, but his increased confidence comes more from an update to his valuation models.  

He now believes that Alibaba’s cloud business is worth $100 billion (up from his prior estimate of $80 billion), and notes the market may still be undervaluing its online shopping division. While other e-commerce stocks, like Amazon, Shopify (SHOP) and eBay (EBAY) have seen their recent rallies cool slightly, they are still trading near the high ends of their historical valuation ranges, while Alibaba is trading closer to its midpoint. That could leave room for more multiple expansion, he writes.

Alibaba is up 1.4% to $275 in recent trading. While the stock has pulled back from its highs near $300, it’s still up more than 30% in 2020.