Yesterday’s Upgrade Review: Alibaba Group Holding Ltd (NYSE:BABA)

Alibaba Group Holding Ltd (NYSE:BABA) shares were up 0.88% on Tuesday when approximately 10.83M shares were traded, against the average daily trading volume of 10.65M. Analysts at Credit Agricole recently upgraded the stock to Underperform from Buy. Alibaba Group Holding Ltd (NYSE:BABA) has a consensus Strong buy rating, according to Zacks Investment Research. No analyst has rated the stock with a sell rating, 1 has assigned a hold rating, 3 says it’s a buy, and 13 have assigned a strong buy rating to the company.

Analysts have a consensus target price of $121.24 in the 12-month period. The price objective is 28.00% higher than the recent closing price of $94.72. The 52-week price range is $59.25-$109.87 and the company has a market capitalization of $235.53 billion.

Alibaba Group Holding Ltd (BABA) on November 21, 2016 announced the opening of four new data centers by the end of 2016 in the Middle East (Dubai), Europe, Australia and Japan. As a major milestone of Alibaba Cloud’s global expansion, the new centers will boost its data center network to 14 locations, covering key economic centers around the world. The data center in the Middle East, located in Dubai, United Arab Emirates, commenced initial operations.

Alibaba Cloud’s expansion will provide customers worldwide with improved latency and greater access to its diverse offerings, including data storage and analytics services, enterprise-level middleware, and cloud security services. Strengthening Alibaba Cloud’s position as a major global cloud provider, the new data centers will support Alibaba Cloud’s growing client base beyond the current 2.3 million.

Through a stronger network of facilities and strategic partnerships, Alibaba Cloud also plans to drive a globalization of innovation. The enhanced cloud capabilities make breakthrough innovation a real possibility with artificial intelligence, deep learning and data analytics.

“Alibaba Cloud has contributed significantly to China’s technology advancement, establishing critical commerce infrastructure to enable cross-border businesses, online marketplaces, payments, logistics, cloud computing and big data to work together seamlessly. We want to establish cloud computing as the digital foundation for the new global economy using the opportunities of cloud computing to empower businesses of all sizes across all markets,” said Simon Hu, President of Alibaba Cloud.

Evidence of the potential of Alibaba Cloud can be seen during the recently completed 2016 11.11 Global Shopping Festival, where Alibaba Cloud technology supported all of Alibaba’s online marketplaces and facilitated a record-breaking 175,000 transactions per second during peak traffic spikes. The festival showcased the capabilities not only of the cloud, but also a number of other areas, such as virtual reality, thus helping to redefine technological boundaries.

Yahoo! Inc. (NASDAQ:YHOO) will Change Name to Altaba after $4.8 billion sale to Verizon

Internet giant Yahoo! Inc. (NASDAQ:YHOO) announced on Monday that it will whittle down its board after finalized its deal with Verizon Communications Inc., and several longtime directors, including Chief Executive Marissa Mayer and co-founder David Filo, will not remain as directors.

The company also said that following the sale of its core internet business, it will change the name to Altaba Inc. from RemainCo, Yahoo said in a regulatory filing. Altaba’s outstanding assets comprise Yahoo’s stake in Alibaba Group Holding Ltd. and Yahoo Japan.

The name Altaba is derived from the words “alternate” and “Alibaba.”

Meanwhile it also said that Mr. Eric Brandt, who joined Yahoo’s board last March and is the former CFO of Broadcom Corp., will become chairman of Altaba. He will be joined by four other directors who are currently on Yahoo’s board, including Thomas McInerney, who was part of the independent committee of Yahoo directors running the auction process last year.

All these changes are expected following the close of the almost $4.8 billion sale to Verizon, which has been threatened by two huge breaches of Yahoo’s user data. In the filing, Yahoo mentioned the fact that there are chances that Verizon could dismiss its purchase of Yahoo or renegotiate the terms because of the hacks.

In the recent days Verizon has looked less convinced that the deal will go through especially following a second breach of one billion accounts was exposed last month. The breaches could be a material event that would allow Verizon to change the terms of the deal, executives have said.

According to the statement, Six Yahoo directors are on the exit list following the Verizon sale, including Ms. Mayer, Mr. Filo and Maynard Webb Jr., a director since February 2012, who was named chairman in August 2013. Mr. Webb, as of Monday, became chairman emeritus.