Alibaba Group (NYSE:BABA) announced Q2 earnings that smoked analyst estimates and sent shares flying.
The e-commerce giant announced earnings per share of $1.29 on $8.29 billion in revenues while analyst were looking for $1.04 on $6.58 billion in revenues. It also had an increase in monthly active users to 549 million, up 3.8% for the quarter.
Shares hit all-time highs of $195.
BABA Technicals
As you can see in the 5-minute chart above, shares made a big jump following the second-quarter earnings release that beat analyst expectations. We currently have highs of $195 but have since pulled back and are currently trading in the $190 range.
We want to watch a couple of different levels including $193 and Wednesday's high at $188.88. There was some consolidation between $191 and $193.
Expect heavy resistance at pre-market highs, but if prices can make it through there I see $200 as the next big stop.
If you’re looking to trade BABA, make sure to play it smart. Shares will be volatile with large swings, so manage your risk properly.
CEO Comments
We had an outstanding quarter. Our consumer insights and technology innovation were the key drivers behind our customer value proposition across the Alibaba economy,” said Daniel Zhang, Chief Executive Officer of Alibaba Group. “We are seeing the early results from our efforts to integrate online and offline with our New Retail strategy, and consumers have benefited from access to high quality products, improved customer experience and the tremendous convenience of shopping anytime, anywhere.