Here's Why Alibaba Group Holding Ltd. Shares Rose 11% in August

Here's Why Alibaba Group Holding Ltd. Shares Rose 11% in August

Shares of China-based e-commerce giant Alibaba Group (NYSE: BABA) gained 10.8% in August, according to data from S&P Global Market Intelligence. The company released a rock-solid earnings report in the middle of the month, followed by a plethora of flattering analyst price-target hikes.

In the first quarter of fiscal year 2018, Alibaba's sales rose 53% year over year to land at $7.4 billion. Free cash flows jumped 70% higher, stopping at $3.3 billion. Bottom-line earnings nearly doubled to $2.1 billion, or $1.17 per American depositary share. Analysts had been expecting earnings of roughly $0.92 per ADS on revenue near $7.2 billion.

Alibaba shares rose more than 9% over the following week as investors and analysts absorbed the stellar report.

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Source: Fool.com