How to Play Alibaba Stock Now After Singles' Day

Alibaba stock was up as much as 3.5% to $119.07 Wednesday, one day after the biggest shopping day in history.

Nov. 11 was "Singles' Day" in China. More than $9.3 billion was spent over Alibaba Group Holding Ltd.'s (NYSE: BABA) network of sites. In just 24 hours, Alibaba processed more than 278 million orders.

Alibaba stockThat's more than was spent in the entire United States last Thanksgiving, Black Friday, and Cyber Monday combined. Last year's U.S. Cyber Monday sales totaled just $1.7 billion.

It's also 60% more than Alibaba's 2013 Singles' Day transaction volume total of $5.8 billion.

Each year on Nov. 11 (think 11/11), Chinese bachelors and bachelorettes celebrate their single lives. The holiday is popular with young people, who throw parties and shower themselves and each other with gifts.

Singles' Day began in 1993, but took off in 2009. That's when Alibaba began promoting the holiday.

The growth has been incredible. In 2009, Alibaba had a transaction volume of just $7 million on Singles' Day. This year's volume was a 132,757% increase. All in six years.

"You're seeing the unleashing of the consumption power of the Chinese consumer," Alibaba's Executive Vice Chairman Joe Tsai told BBC. "We really are witnessing history here because we are seeing the shift of the economy from focused on the state sector to consumption."

This year, sales reached $1 billion in the first 17 minutes of Nov. 11. Because of the 13-hour time difference between Beijing and New York, the early news reached U.S. investors during Monday's trading session.

That pushed Alibaba stock to an all-time high Monday of $119.45. After the frenzy, BABA stock settled back down 3.9% Tuesday. Today, the stock was back up near Monday's high.

While Nov. 11 was a major win for BABA investors, the company's insane Singles' Day growth figures go beyond this holiday. The e-commerce market in China is experiencing unprecedented growth.

Here's a breakdown of the billions of dollars investors tap into when they buy BABA stock...

Alibaba Stock's Biggest Catalyst

In 2013, China surpassed the United States as the largest e-commerce market in the world. Chinese consumers spent $298 billion online last year compared to the $263 billion spent by U.S. shoppers. That was a 60% year-over-year increase in China.

Analysts at the management consulting firm AT Kearny estimate that number will hit $390 billion for 2014. By 2017, they expect $718 billion.

Alibaba's own user growth is equally astounding. Last quarter, it reported 307 million annual active buyers on its sites. There are almost as many people shopping on Alibaba in China as there are total people in the United States.

Alibaba's mobile user base is growing too. Last week, the company reported 217 million mobile users - a yearly increase of 138%. Mobile revenue was up more than 1,000% from 2013.

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.

Roughly 80% of all online transactions in China take place over the Alibaba network. The enormous transaction volume we saw this week is just the tip of the iceberg.

All these growth figures have sent BABA up 33% in the last month.

That's why across the board, Money Morning experts are bullish on Alibaba stock.

In last week's quarterly earnings report, BABA reported earnings per share (EPS) of $0.45. Money Morning's Chief Investment Strategist Keith Fitz-Gerald sees those EPS figures jumping significantly in 2015.

"I think Alibaba is going to see $3 per share in earnings next year or roughly double the $1.45 analysts now expect on average," Fitz-Gerald said.

"I love Alibaba and I love what they stand for," he said during his regular appearance on FOX Business this week. "I've recommended Alibaba stock for a long time. I think the stock has a long way to go from here, and the company is going to rewrite the Internet."

Money Morning's Executive Editor Bill Patalon has repeatedly referred to Alibaba as the next Wal-Mart Stores Inc. (NYSE: WMT).

"Alibaba offers today's investors the same profit opportunity that Wal-Mart offered when it went public back in 1970," Patalon said. "We believe that Alibaba offers a similar long-term opportunity."

So just how high will the BABA stock price go? According to Money Morning's Capital Wave Strategist Shah Gilani, there's no telling.

"I don't know that there is a ceiling for Alibaba. I think over time this is just one of those stocks you have to hold onto," Gilani said on FOX Business today.

What to Read Now: Money Morning's Chief Investment Strategist Keith Fitz-Gerald made the rare move of releasing one of his subscriber stock recommendations to the public last week. But according to him, the profit opportunity from this discounted stock is too good not to share...