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

 
Lynsey Barber
Follow Lynsey
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.

Read more: Jack Ma: Technology disruption will bring decades of pain

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.

Related articles