Why Analysts Are Falling Over Themselves to Upgrade Alibaba
Chinese e-commerce giant Alibaba (NYSE: BABA) just held its annual investor conference over the last few days of September. The stock surged over 6% on Wednesday as analysts rushed to lift their price targets. Why? It wasn't the core Taobao, Tmall, and Alibaba marketplaces that boosted enthusiasm -- it was Alibaba's new rising stars.
Like its fellow large-cap U.S. stocks, Alibaba has been developing its cloud computing business over the past decade. It's now the Chinese market share leader by a wide margin. In the quarter ended in June, Alibaba's cloud made up 8% of overall revenue, but the unit grew at a sterling 59% rate.
Source Fool.com
