BABA is trading $88.83, down 1.8% with IV30™ trading at 34.80%. The Symbol Summary is included below.
Provided by Livevol
There's a lot of noise surrounding BABA from social media to CBS to... everywhere.. yet I have yet to see some of the simplest and most important analysis set forth.
Tomorrow will be time for risk analysis, but today, let me introduce you to this company and what the firm has reported on their financials. In other words, let's hit silence on the noise, and start over with a clean slate.
And by the way... this very simple practice brings some glaring questions to light immediately.
Net Income vs. Total Revenue
We can see that BABA has ~$9B in revenue over the last year and turned that into $5B in net income (really?). I have highlighted how that compares to AMZN and GOOGL (and a bunch of other peers).
Here's an image of total revenue (ttm) in a time series. The company reported a blow out quarter just prior to IPO (eh hem).
Revenue in the second quarter increased 46 percent year-on-year to $2.54 billion, a faster pace than the 38.7 percent revenue growth that Alibaba posted in the first quarter.
Net income attributable to Alibaba's ordinary shareholders nearly tripled to $1.99 billion, or 84 cents per share, in the quarter.
Source: Reuters Alibaba revenue soars ahead of IPO, written by Abhirup Roy and Alexei Oreskovic.
Net Income (TTM)
Here is net income (ttm). That's some rapid (reported) growth.
Net Income Margin % vs. Gross Margin %
The earnings margin BABA reports are gigantic. In fact, if we take gross margin % on the y-axis and net income margin % on the x-axis, BABA is essentially on an island all by itself to the right (net income margin %), while it's gross margin % is sort of "middle-of-the-road." Eh hem...
Gross Margin %
Gross margin % is very high, but is dipping...
This is trade analysis, not a recommendation.
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.
The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. I am not engaged in rendering any legal or professional services by placing these general informational materials on this website.
I specifically disclaim any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if I have been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
I make no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that I endorse, sponsor, promote or am affiliated with the owners of or participants in those sites, or endorse any information contained on those sites, unless expressly stated.