Alibaba Group (BABA) shares are set to open at a record high Thursday.
Alibaba forecast another massive surge in full year revenues.
Their CFO Maggie Wu said annual sales growth will rise between 45% and 49% in the 2018 fiscal year. This figure will top analysts’ forecast. Furthermore, it implies revenues of up to $34.3 billion. This is well ahead of the $31.42 billion expected.
Like its American competitor Amazon Inc. (AMZN), Alibaba has diversified its offering beyond online retailing to cloud-computing and streaming media. It will still trail Amazon’s $136 billion in annual sales. However, the company growing its top line at twice the pace of its American rival.
Wu said that the company would continue to make investments, with an emphasis on cloud computing, sacrificing a small slice of profitability to pay for them.
This news also bodes well for other Chinese e-commerce company JD.com (JD).