Alibaba (BABA) - Get Report is slated to report fiscal second-quarter earnings on Nov. 2, but investors will be just as interested to hear about the company's plans for Single's Day, which happens just nine days later.
"The numbers will be big and they'll be bigger than last year," Alibaba President Michael Evans said in an interview with Bloomberg, while at the Vanity Fair New Establishment Summit in San Francisco.
In 2015, Alibaba generated $14.3 billion in sales, adding new features to the shopping day like fashion shows or games using augmented reality. When it started in the 1990s, it was positioned as an alternative to Valentine's Day, but it has become a huge shopping phenomenon, with many Chinese retailers, including Alibaba competitor JD.com, (JD) - Get Report , offering sales on various goods.
Nomura Securities analyst Jialong Shi, who has a "buy" rating and a $129 price target on BABA, is looking for 52% year-over-year revenue growth from the Hangzhou-based Alibaba.
There may also be a benefit for Alibaba from the slew of Chinese logistics companies that are seeking to go public.
ZTO Express, YTO Express, STO Express, Yunda Express and SF Express have all filed to go public, either in China or on foreign stock exchanges. Since Alibaba relies on these services, Shi wrote some of the proceeds from the respective IPOs would be used to "expand their network and enhance delivery capacity, which eventually would help improve the quality of services for Alibaba's customers."
Analysts surveyed by Yahoo! Finance expect Alibaba earn 70 cents a share on $5.08 billion in revenues.
MKM Partners analyst Rob Sanderson thinks Alibaba will be the best performing large-cap internet stock next year, citing "the company is positioned to manage a lengthy cycle of increased monetization."
The Jack Ma-led Alibaba has had an exceptional 2016, with shares rebounding more than 60% off their lows as the company accelerates growth. Investors will be looking to see if that continues. These three ETFs may benefit if investors like Amazon's third-quarter results.
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MKM's Sanderson, who has a "buy" rating and a $130 price target, expects 52% growth in revenues. "We see a long cycle of robust topline growth in the core commerce business, flexibility to make large ecosystem investments and very material value in cloud, financial, logistics and other assets," Sanderson wrote to clients.
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In addition to a longer cycle of monetization, Sanderson noted that increased time spent on the various Alibaba sites "is being noticed by brand marketers, but recent growth acceleration has been driven by performance marketing. The large revenue opportunity from brand advertising is yet to be tapped."