Stock Update (NYSE:BABA): Alibaba Group Holding Ltd and SoftBank Form Joint Venture to Launch Cloud Computing Services in Japan
Alibaba Group Holding Ltd (NYSE:BABA), one of the largest online and mobile commerce companies in the world, and SoftBank Corp., the Japan-based telecom subsidiary of SoftBank Group Corp. (TOKYO:9984), jointly announced the establishment of SB Cloud Corporation (“SB Cloud”) to launch cloud computing services in Japan that utilize technologies and solutions from Alibaba Cloud, the cloud computing arm of Alibaba Group.
SB Cloud will open a new data center in Japan and provide competitive and enhanced public cloud computing services from Alibaba Cloud to meet the various needs of Japanese customers, ranging from startups to multinational companies. The joint venture will enable Alibaba Cloud to further expand its cloud computing service platform with SoftBank’s extensive business customer base in Japan, which comprises numerous global organizations.
SB Cloud will play a key role in supporting Alibaba Cloud’s business presence in the Japan market where the demand for public cloud computing services is growing rapidly. It will provide Japanese enterprises with Alibaba Cloud’s diverse offerings, including data storage and processing services, enterprise-level middleware as well as cloud security services.
Sicheng Yu, Vice President of Alibaba Cloud, says: “We are proud that Alibaba Cloud can leverage its cloud computing expertise in the joint venture with SoftBank. We look forward to helping more Japanese companies grow their business with our secure, scalable and innovative cloud computing services.”
Eric Gan, Representative Director, CEO of SB Cloud and Executive Vice President of SoftBank, says: “I’ve really enjoyed working with the Alibaba Cloud team on the joint venture over the past few months. During the business planning discussions, I quickly felt that we were all working very much as one team with one goal. I believe the JV team can develop the most advanced cloud platform for Japanese customers, as well as for multinational customers who want to use the resources we have available in Japan.” (Original Source)
Shares of Alibaba closed yesterday at $79.16, down $0.64 or -0.80%. BABA has a 1-year high of $95.06 and a 1-year low of $57.20. The stock’s 50-day moving average is $78.41 and its 200-day moving average is $76.13.
On the ratings front, Alibaba has been the subject of a number of recent research reports. In a report issued on May 9, Nomura analyst Jialong Shi reiterated a Buy rating on BABA, with a price target of $95, which represents a potential upside of 20.0% from where the stock is currently trading. Separately, on the same day, Oppenheimer’s Jason Helfstein reiterated a Buy rating on the stock and has a price target of $100.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jialong Shi and Jason Helfstein have a total average return of 0.3% and 6.5% respectively. Shi has a success rate of 40.0% and is ranked #2270 out of 3845 analysts, while Helfstein has a success rate of 50.6% and is ranked #298.
The street is mostly Bullish on BABA stock. Out of 12 analysts who cover the stock, 12 suggest a Buy rating . The 12-month average price target assigned to the stock is $98.75, which implies an upside of 24.7% from current levels.