Raymond James analyst Aaron Kessler is encouraged by Chinese government data indicating that growth of online purchases in the country is nearing pre-coronavirus levels. He said the latest data showed a 16% year-over-year bump in e-commerce sales of physical goods during the month of April, which compares with a 11% rise in March, a 3% increase in January and February, and a 17% climb in the December quarter, Kessler said. "Based on the data, we have increased confidence in our June quarter Alibaba estimates," he wrote, as he estimates 16% growth in customer management revenue and 14% commission growth. Kessler has a strong buy rating on U.S. listed shares of Alibaba, which are off 1.2% in premarket trading. The shares have declined 8.4% as the KraneShares CSI China Internet ETF (KWEB) has lost 3.7%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 15, 2020 08:42 ET (12:42 GMT)
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