Alibaba's first earnings to test mettle, investor enthusiasm

SAN FRANCISCO/BEIJING (Reuters) - Alibaba Group Holding Ltd's first full quarterly report card to Wall Street investors on Tuesday will be scrutinized by the hopeful seeking validation for lofty stock price targets and studied by the few skeptics searching for inauspicious signs. Coming off Alibaba's record-breaking $25 billion IPO in September, the company's shares have remained 45 percent above their debut price. Instead, their focus is on Alibaba's profit margins, among the fattest in the global e-commerce industry and far outstripping those of loss-making Amazon. "The stock is now trading at a pretty high multiple, and in order to justify that, they need to show really strong results out of the gate," said Wedbush Securities' Gil Luria.

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