After Alibaba Earnings, Here's What to Expect from Alibaba Stock (NYSE: BABA)

The Alibaba earnings report will be released before the opening bell tomorrow (Wednesday, Aug. 12), and consensus estimates call for earnings per share (EPS) of $0.58.

stocks to buy nowExpect investors to be disappointed by Alibaba's income figure. Net income is expected to come in at $841 million, which will be a 57% decline from last year. However, the income dip is attributed to Alibaba's push into the mobile Internet business and business developments, not falling revenue.

Investors may react negatively to falling income, but don't forget that Alibaba is still growing its business.

Revenue is expected to come in at $3.39 billion, which would be 33.5% higher than last year.

Many will be tuning into the Alibaba earnings live call to hear how the company has modified outlook based on China's recent economic woes. China expects economic growth of 7% for the full-year 2015. That would be its lowest growth in more than 20 years. In July, exports in the country fell 8.3%.

Investors will listen to hear how Alibaba addresses these concerns. Many have pointed to the recent stock market crash in China as a reason to avoid BABA stock, even though the company is still growing revenue by nearly 34%.

The Alibaba earnings report should also shed light on the company's $4.6 billion purchase of a 20% stake in the electronics chain Suning Commerce Group Inc. on Monday. Suning is a brick-and-mortar chain with more than 1,600 stores in 289 cities in China. The purchase was one of Alibaba's largest in the past two years.

Finally, investors will also look for an update on the company's online payments segment.

This Alibaba earnings report will be particularly important for the company because its stock has dipped 25.2% in 2015. And while many are avoiding the stock, Money Morning experts say BABA stock is trading at an absolute bargain right now...

Why BABA Stock Is a Buy After Alibaba Earnings

Alibaba shares opened Tuesday at $79.48 and fell to a low of $77.08 in afternoon trading.

Many are disappointed by BABA stock's 2015 returns, but Alibaba stock's short-term performance is of little importance. According to Money Morning Executive Editor Bill Patalon, BABA stock is one of the best long-term investments on the market.

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"This company has market power, a visionary leader, and it's making smart decisions," Patalon explained. "They're trying to build something special. A paradigm-shifting, rule-breaking company. They're trying to create new ways of doing things."

While many investors are worried about the Chinese economy, China's Internet industry is one of the biggest reasons to be bullish after Alibaba earnings.

A recent study by the China Internet Network Information Center (CNNIC) determined the number of Internet users in the country will hit 800 million by 2016 or sooner. By comparison, the entire current population of the United States is just 319 million.

"Alibaba is gaining traction in its home market in China just as that country's people are truly joining the Internet revolution," Money Morning Defense & Tech Specialist Michael A. Robinson said. "And the development of easy-to-use mobile commerce is giving Alibaba a strong tailwind."

According to Robinson, Alibaba "could be the single-greatest wealth opportunity of our lifetime."

"What you have to look at is the long-term potential, which is still huge," Patalon said. "They still haven't even maxed out their own market. They're bringing in entertainment companies and new business-to-business ventures. They're going to keep expanding their offerings."

That's why Patalon urges investors to look past quarterly Alibaba earnings reports.

"This isn't just a stock to buy for 2015," he explained. "This is a great investment for years to come. If you invest money that you can afford to lose and hold onto the stock for several years, you'll end up being very surprised by how much you've made."

The Bottom Line: Alibaba earnings will be released before the bell on Wednesday, and investors are looking for EPS of $0.58 on $3.39 billion in revenue. Any earnings miss will likely send BABA shares lower as investors remain worried about Chinese stocks. Any dip in the Alibaba stock price will be a good buying opportunity as this remains one of the best long-term stocks to buy.

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Profit Alert: Since Money Morning Executive Editor Bill Patalon launched his Private Briefing program just a few short years ago, he's recommended 192 stocks that have either doubled or tripled in value. The service has completely revolutionized the way people invest. Keep reading to find out more about his extensive research and premium stock picks...