Youku Tudou shares price closed at $24.95 per share on Friday up by 22 percent as the stock rallied higher upon the circulation of the acquisition by Alibaba. Previously, the analysts had a Underperform rating on the shares. Analysts at Cantor Fitzgerald reiterated their Buy rating on the e-commerce giant, as both higher likelihood of the deal going through along with the potential benefits to be enjoyed by it will likely drive its stock upwards towards their $88 price target. RBC Capital dropped their target price on shares of Alibaba Group Holding from $105.00 to $91.00 and set an “outperform” rating on the stock in a report on Thursday, August 13th.
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As much as Alibaba Group Holding Ltd (NYSE:BABA) is doing its best to cast itself as the gateway to China, the company is dogged by serious problems.
Shares of Alibaba Group Holding Limited (NYSE:BABA) rose by 4.77% in the past week and 9.49% for the last 4 weeks. The company has a market cap of $179,651 million. The company’s 50-day moving average is $64.83 and its 200-day moving average is $78.07. He has a 63% overall success rate recommending stocks with a +21.5% average return per rating when measured over a one-year horizon and no benchmark.
In the latest statement by the brokerage house, Oppenheimer maintains its outlook on Alibaba Group Holding Limited (NYSE:BABA). The shares opened for trading at $71.8 and hit $73 on the upside, eventually ending the session at $72.65, with a gain of 0.92% or 0.66 points.
Alibaba had offered $3.6 billion for the remaining stake in Youku Tudou, Bloomberg News reported, quoting a person familiar with the matter. The company earned $3.27 billion during the quarter, compared to analyst estimates of $3.43 billion. Youku Tudou’s revenue for the quarter was up 57.0% on a year-over-year basis. On average, equities research analysts anticipate that Alibaba Group Holding will post $16.56 EPS for the current fiscal year. The real attraction is Youku Tudou’s user base.
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More than 461 million people in China consumed video online as of June, with 354 million users accessing from mobile phones, according to the China Internet Network Information Center. Mr. Guo is of the view that Youku’s acquisition could enable Alibaba to strengthen its already robust eco-system, highlighting that Youku now caters to around 600 million monthly users. The company, which mostly streams professionally produced content rather than amateur videos, plans to collaborate with USA entertainment producers to create content for its website, Koo said in an October 2014 interview. On Tmall, the company has created what it calls “country pavilions” that allow Chinese consumers to sample popular products from different countries. 2 analysts have rated the company at hold. The conditions of its licenses vary based on the kind of producer and content, although conditions for movies and television serial dramas vary from half a year to ten years.
