Alibaba Group Holding Ltd (NYSE:BABA) is expected to post robust growth this year and in the coming years as well. As part of the cloud based AI business, the 2019 revenues of Alibaba is expected to match with Amazon.com, Inc. (NASDAQ:AMZN) revenues posted in 2014 and the Azure of Microsoft Corporation (NASDAQ:MSFT) in 2017. The company is also very much in the vicinity of Apple Inc.(NASDAQ:AAPL) when it comes to the ecosystem.
The shares of Alibaba has witnessed a strong run in 2017. The analysts are putting a heavy weight on the stock. The market cap of the company is expected to reach a trillion dollar mark in the future.
A renowned stock analyst Mr. Jason Helfstein and his team at Oppenheimer are bullish on Alibaba. They have put a price target of $220 for the stock on Wednesday apart from upgrading to out performer of the market considering the growth prospects in the cloud based AI business and e-commerce sectors.
The stock of Alibaba is trading at $193.82 (up 0.8%) in the afternoon session. It has surged more than 12% as on date and more than 88.6% when compared to the previous year.
According to Helfstein, Alibaba is dominant in the e-commerce segment with estimated/high spending and active 488 million consumers. The annual average spending of such consumers is estimated at $1,223. It is further supported by the innovative retail strategy of Alibaba and streamlining of the distribution channels. The company is also ramping up efforts for considerable growth.
About Alibaba Group Holding Ltd
The business line of Alibaba consists of mobile media/ entertainment, cloud computing, e-commerce, and other new initiatives. The company offers a plethora of products and services as well as technology enabling the brands, merchants and other key players in transforming the business to operate and sell in the overseas markets as well as in China.
The company also participates in local services and logistics with the help of investee affiliates. The company also conducts flash sales and wholesale commerce operations in China.