Alibaba Group Holding Ltd (NYSE:BABA) has been receiving some favourable ratings lately and this time Barclays too have decided to join that band wagon by initiating the Chinese e-commerce’s rating as overweight. On CNBC‘s segment of Street Signs, Mandy Drury and Scott Wapner reported on the news.
“[…] The 12 month price tag has been set at $107. The reasons here, they include, it [Alibaba Group Holding Ltd (NYSE:BABA)] has got a leading online ecosystem, there is an upside, there is an upside potential for its monetization rate, it has got synergies across market places […],” reported Drury.
It’s not only good publicity in terms of high target prices that Alibaba Group Holding Ltd (NYSE:BABA) has been enjoying lately. The e-commerce giant is also up about 38% from the time of its IPO in September. Alibaba was trading at $94.45 when the closing bell rang today, up about 3.08% for the day, partly because of Barclays valuation.
It is a little tricky with Alibaba Group Holding Ltd (NYSE:BABA)’s valuation as there are no concrete numbers available on the company yet. The e-commerce giant with a market cap of $230 billion is set to release its first quarterly earnings report on 4th November.
China is a huge market for e-commerce and it is only going to grow more as mobile users in the country grow. It is not easy for other foreign e-commerce companies to start business in China owing to regulatory and language hindrances. Alibaba, however, has those successfully out of the way.
Alibaba Group Holding Ltd (NYSE:BABA) has also diversified and trying to tap into other markets as well. However, it remains to be seen whether the company plans to enter the more developed markets of U.S. and Europe as well, where its competitors have a strong presence. Many critics have advised against such a move, as they believe that Alibaba Group Holding Ltd (NYSE:BABA) will lose its edge if it chooses to do that, and further expansion in China is a better plan.
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