Shares of Zulily spiked more than 18% in pre-market trading on Monday after news over the weekend that Alibaba bought a more than 9% stake in the company.
According to regulatory filings, Alibaba said it bought around 4.8 million class A shares for around $56 million.
Zulily is an online retailer that targets mothers, with daily deals on clothes, toys, and other things for their children. Zulily shares tumbled more than 16% in trading on Wednesday.
The company said it sees Q2 revenue coming in at $285—$300 million, well below Wall Street’s forecast for $361.7 million.
Alibaba’s quarterly results, in contrast, topped expectations for earnings and revenues. Analysts at Wells Fargo forecast that the Chinese e-commerce company will soon overtake Wal-Mart to become the largest retailer in the world……
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Image: Zulily via Instagram