Where is Alibaba Group Holding Limited (BABA) Headed According to the Street?

Alibaba Group Holding Limited (NYSE:BABA) is one of the best long term low volatility stocks to invest in. On January 29, China Merchants Securities reiterated a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) and set a price target of HK$194.00. The rating update came the same day Reuters reported that Alibaba Group Holding Limited’s (NYSE:BABA) logistics arm, Cainiao, is set to buy stake in Chinese robovan developer Zelostech. The Wall Street Journal, which originally announced the news, reported that the deal would create a business valued at around $2 billion.

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Reuters further reported that according to Zelostech, “Cainiao will not become a controlling shareholder of Zelostech”, and that Cainiao will “contribute its autonomous-driving business” to the deal and make a cash investment in the company. An emailed statement from Zelostech, according to Reuters, further stated that “Zelostech and Cainiao’s autonomous-driving unit have entered into a deep strategic integration, jointly building a RoboVan Super Carrier in the unmanned freight sector.”

The Journal reported that Cainiao’s autonomous-driving unit would be folded into Zelostech, and that the latter would operate both brands simultaneously.

Alibaba Group Holding Limited (NYSE:BABA) manages and provides technology infrastructure and marketing platforms. It operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others segments.

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Disclosure: None. This article is originally published at Insider Monkey.