Alibaba Group Holding Limited (NYSE:BABA) [Detail Analytic Report] moved up in pre session on Thursday as it is ready to announce fourth quarter financial results before trading session starts on Thursday. In the third quarter, Alibaba topped earnings per share and revenue estimates despite worsening macroeconomic conditions in the country. Alibaba is expected to post revenue of $3.6 billion, compared to $2.8 billion previous year, according to the FactSet, MarketWstach reported. Chinese e-commerce giant has come in ahead of anticipations in the previous two quarters.
On the other side, Alibaba has revealed the inaugural investments of its Hong Kong Entrepreneurs Fund, committing money and resources to three startups in the online apparel, e-commerce services and logistics spaces. Yeechoo, GoGoVan and Shopline, will receive minority investments and support from e-commerce giant to help scale their businesses. They were chosen from more than 200 other young firms who submitted applications to the fund. Joseph Tsai, Executive vice chairman of Alibaba Group stated in a statement that these firms embrace technology to create value for the society, and they are excited to work with them and help them grow their businesses with resources available from the fund and Alibaba Group.
Alibaba reported the establishment of its Hong Kong Young Entrepreneurs Foundation in February 2015, with the fund launching in November. The initiative was created to support Hong Kong entrepreneurs, delivering them with venture capital and mentoring during the startup phase. All of the profits from these investments are put back into foundation for additional investments. Jack Ma, Executive Chairman of Alibaba stated at the time that with a mission to make it easy to do business anywhere, Alibaba is passionate about fostering entrepreneurial spirits among young people. They hope to create life-changing opportunities so that young people of Hong Kong have an opportunity to build thriving businesses that will serve as a bridge between China and Hong Kong.
Noting a main crunch of analyst research by WSJ, BABA under observation of quarterly per share earnings, it has second quarter 2016 trend of $0.55, while in next quarter estimated EPS trend is $0.68 and for annual basis for 2016 estimated EPS is $2.67. Relatively pool of WSJ analyst issues diverse rating, as for current level it has 32 experts rated as “BUY” security, 3 analyst recommend as “Overweight,” and 5 experts rated as “Hold”.
HSN, Inc. (NASDAQ:HSNI) [Detail Analytic Report] announced net income of $28.6 million in its first quarter. The Florida-located firm reported that it had profit of 54 cents a share. The results beat Wall Street outlooks. The average estimate of experts polled by Zacks Investment Research was for earnings of 50 cents a share. HSN declared its revenue of $816.8 million in the quarter, which missed Street forecasts. According to Zacks, analysts have expected $839 million.
Shares of HSN have soared nearly 5 percent since the starting of the year. The stock has plummeted 16 percent in the previous twelve months. Mindy Grossman, Chief Executive of HSN commented on the results that their performance in the period reflected the impact of the volatile retail environment combined with the repositioning of their product portfolio. They continue to invest strategically in digital, data analytics and content while aggressively managing overall expenditures in the business.
Grossman added restoring top-line growth remains their top priority as they make progress in reenergizing certain merchandising categories and brands that they believe will build momentum at HSNi as the year progresses. Digital-now representing over half their sales-remains a significant area of strategic focus and they continue to pursue opportunities to optimize their distributed commerce platforms, Grossman added. They are confident that as they speed up their differentiated product pipeline, extend their content and reach and leverage new alliances and platforms, they will be well positioned for long-lasting sustainable growth.