Great expectations

9 June 2017 By Robyn Mak Follow @mak_robyn

Investors rewarded Alibaba with another $41 bln in market value after the e-commerce giant unveiled startlingly optimistic revenue growth forecasts. It’s a powerful vindication of Ma’s forays into AI and cloud technology. Expectations for Alibaba to deliver are higher than ever.

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Shares of Chinese e-commerce group Alibaba rose 13 percent to $142.34 per share on June 8 after announcing better-than-expected forecast revenue growth for the 2018 fiscal year.

During an investor conference held in Hangzhou, China, Chief Financial Officer Maggie Wu said she expects annual revenue growth of 45 to 49 percent. That compares to the 38 percent analysts polled on Eikon were forecasting on average.

Alibaba beat revenue expectations in the quarter to the end of March, but fell short of earnings estimates.

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