"We estimate BABA will soon be the largest retailer in the world, with much better returns and margins than the current leader; Walmart," said Wells Fargo's Nemer. Much of this optimism stems from Alibaba's leading position in the exploding e-commerce space. Investors also like the company's increasing success in mobile, with mobile monthly average users rising to 289 million from 265 million in the previous quarter. Alibaba "remains a direct exposure to spending moving online, particularly mobile," said Mubayi. In fact, shoppers are already buying more on their phones and tablets: Half of Alibaba's gross merchandise volume originated on a mobile device in the quarter, up from 27% a year earlier. At $87 on Friday, the company's stock is about 26% above its September IPO price of $68, but below its November highs of $120.