Alibaba Group Holding Ltd (NYSE:BABA) has announced take over of Daraz Group of Rocket Internet SE (RKET.DE).
Established in 2012 in Pakistan, Daraz Group of Rocket Internet conducts business operations in Myanmar, Bangladesh, Pakistan, Nepal and Sri Lanka. Following the takeover by Alibaba, the South Asian e-commerce platform will continue to operate under the same trademark.
It is part of the ambitions of Alibaba to establish a footprint in South Asia. Alibaba has also taken over Lazada of Rocket company two years back.
The company has also established its presence in India through the support of PayTm.
China based Alibaba is also planning to acquire 20% stake in bKash, a payment firm, to make its presence deeper in South Asia.
Alibaba Group Holding Ltd Beats Earnings Forecasts In Q4
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The revenues of Alibaba Group Holding Ltd are estimated at US$9.87 billion (up 61% when compared to the same period last year) in Q4. Its earnings per share are estimated at 91 cents beating the estimate of Zacks Consensus by 3 Cents. The revenues of Alibaba also surpassed the analyst’s estimates of US$9.18 billion.
The strong drivers for this growth are International commerce retail business, revenue growth in China, strong growth of cloud business of Alibaba, as well as the consolidation of Cainiao Network.
Analysts Upbeat on Alibaba Group Holding Ltd on Better Than Expected Results
The prominent analysts SunTrust Robinson and After KeyBanc has assigned a buy rating on Alibaba last month. This month another analyst has set a buy rating for the stock third time. The price target for the stock is maintained at $230 from the last closing price of $188.89. The out-performer rating is based on the strong Q4 revenues.
Brief Information about Alibaba Group Holding Ltd
Established on June 28, 1999, Alibaba Group Holding Ltd is engaged in conducting business operations through its subsidiaries. The company provides products, technology and services through mobile commerce and online commerce to help transform the way brands and merchants and other businesses conduct their business.
The business segments of Alibaba consists of mobile media/ entertainment, cloud computing, core commerce and other innovative products.