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Morningstar analyst RJ Hottovy said that while he expected Alibaba to further grow revenues, it was entering an aggressive new investment stage that would likely pinch margins over the next couple of quarters.

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The rise in the stock exceeds the average gain by new IPOs on U.S. exchanges of late. In the second quarter, the average first-day gain was 9.2 percent, according to Renaissance Capital IPO Intelligence. Underwriters usually aim for a gain of 10 percent to 15 percent on the first day.

Twitter last year saw its shares surge 73 percent on their first trading day.

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WHAT HAPPENED IN HONG KONG

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Similar euphoria greeted Alibaba when its stock debuted on the stock exchange in Hong Kong in November 2007 on the eve of the global financial crisis. The stock more than tripled on day one, but five years later Ma delisted the company at the IPO price after failing to impress investors.

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