Why Alibaba Stock Is Soaring Today

Shares of the Chinese e-commerce company Alibaba Group Holding (NYSE: BABA) spiked this morning after the company reported fourth-quarter results that beat analysts' consensus top- and bottom-line estimates. Alibaba reported non-GAAP (adjusted) earnings per American depository share (ADS) of $1.25 in the quarter, which was a 23% drop from the year-ago quarter but far above Wall Street's consensus estimate of $1.10 for the quarter. Additionally, Alibaba's revenue increased 9% in the quarter to $32.1 billion, which was better than the average analyst estimate of $29.9 billion.