Alibaba Group Holding Ltd (NYSE:BABA) shares have been on quite a run so far in 2016. In fact, this month shares surged above $100 for the first time in over a year.
Analysts and traders often compare BABA to Amazon.com, Inc.(NASDAQ:AMZN) because of the two companies’ shared e-commerce and cloud services businesses.
When it comes to Alibaba stock, however, Facebook Inc (NASDAQ:FB) makes for a much better comparison. In fact, FB’s past could be a glimpse into BABA’s future.
Why Is Alibaba Stock on Such a Run?
Alibaba shares are now up more than 40% in the past three months. For a company with a market cap of more than $270 billion, that’s a major move. What’s driving the recent numbers? BABA’s incredible growth is showing no signs of slowing down. In fact, BABA’s impressive year-over-year revenue growth has accelerated to 39% and 59% in the second quarter and Q3, respectively.
Earlier this month, Brean Capital reported that Alisports registered 10 times as much traffic during the Olympics as it does on a typical day. The platform reached an audience of 3.8 billion live viewers during the games. Mobile viewers made up about 78% of that audience, PC viewers represented 20% and TV viewers represented only 2%.
Mobile Transition Is Key for Alibaba
For FB stock investors, the “transition to mobile” was…
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