SAN DIEGO, CALIF. (The Street) -- A day after Chinese Internet conglomerate Alibaba (BABA) posted revenue for the September quarter that came in 5% greater than analyst estimates, shares of the e-commerce company shot up to a new intraday high of $110.14 and were trading in the afternoon 3% higher over Tuesday's close price at $109.33.
Alibaba reported earnings of 45 cents a share on $2.74 billion in revenue. Profit was inline with expectations, but, thanks to strong mobile sales, revenue came in materially higher than the market consensus of $2.61 billion. Mobile revenue was $606 million for the quarter, up more than 1,000% year-over-year, and mobile purchases accounted for 35.8% of total gross merchandise volume (GMV).
Watch the video below for a look at how Alibaba became an e-commerce giant:
The company is getting kudos from analysts surprised by its ability to speed up both revenue growth and GMV growth, which are not easy feats considering Alibaba's already large size. GMV, or the total sum from purchases made on Alibaba properties, grew 49% over the year ago quarter.
Following the quarter, analysts remained upbeat on Alibaba's present and future outlook, but did take note of rising stock-based compensation (SBC) costs, which rose 248.4% year-over-year, and lower-than-expected margins.
Here's what Wall Street is saying about the quarter.
BMO Capital Markets analyst Edward Williams (Outperform, $115 PT)
"We believe Alibaba can grow revenue and profits substantially over the next several years, as the company further penetrates the largest and fasting-growing major e-commerce market in the world, boosted by numerous strong secular growth trends. Our price target of $115 is based on 28x our CY2016 adjusted EPS estimate plus strategic investments and excess cash -- a reasonable multiple, in our view, given the significant growth opportunity and the ability to continue generating strong cash flow. We believe the company's stock price could rise over the next year with growth driven by several factors: 1) a leading position in a large, relatively underpenetrated, and rapidly growing e-commerce market; 2) a dominant mobile platform with a growing user base and increasing mobile monetization rates; 3) expansion into new verticals and geographies; and 4) appealing option value from Alipay and other non-core businesses."