Alibaba share price rockets on golden growth forecast for year ahead sending Yahoo higher too

Lynsey Barber
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China International Big Data Industry Expo 2017 (Big Data Expo)
A huge growth forecast has pleased investors (Source: Getty)

Shares in Alibaba have rocketed more than 13 per cent as the US markets opened setting a new record intraday high for the stock as it touched $142.85 per share.

It comes after the Chinese online giant revealed bumper revenue growth forecasts of between 45 and 49 per cent for the year ahead.

The company reported a revenue jump of 56 per cent to 158.27bn yuan (£18bn) for the full-year to the end of March in May, with earnings falling slightly short of expectation, and announced a $6bn share buyback plan, leaving investors mixed.

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Finance chief Maggie Wu made the prediction at an investor conference in China, to cheers and gasps from the crowd.

Shares in Yahoo, which owns a 15 per cent stake in Alibaba, were also boosted by the forecast - up almost 10 per cent as the market opened and hitting at least a 52 week high of $55.35 per share.

Yahoo is soon to transform into Altaba when the deal to sell the remains of its online business to Verizon is sealed - due to happen in June. Altaba will become a holding company for the Alibaba stake and a 35.5 per cent stake in Yahoo Japan.

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