Today it was announced that Alibaba Group Holding Ltd (NYSE:BABA) had partnered with Disney to distribute both Disney and Pixar movies within China. The distribution will be via an over-the-top service called DisneyLife, which will allow subscribers to play games, watch movies, listen to music, buy Disney merchandise and more. Those who purchase a Mickey-Mouse-themed set-top box at a cost of $125 will get a free one-year subscription to the DisneyLife service.
“As we deliver on our goal to meet the needs of a consumers’ daily life, DisneyLife … will provide the only holistic and trusted family friendly digital destination in China,” Wei Ming, Co-President of Youku Tudou Business Group and General Manager of Alibaba Digital Entertainment Business Unit, said.
This seems like an important partnership for both Alibaba Group Holding Ltd (NYSE:BABA) and Disney. The stock increased 2.32% or $1.87 during the last trading session, hitting $82.44. About 13.05 million shares traded hands. BABA has declined 7.15% since May 12, 2015 and is downtrending. It has underperformed the S&P500 by 3.47%.
From a total of 23 analysts covering Alibaba (NYSE:BABA) stock, 21 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 91% of the ratings are positive. The highest target price is $137 while the lowest target price is $80. The mean of all analyst targets is $93.92 which is 13.93% above today’s ($82.44) stock price. Alibaba was the topic of 50 analyst reports since August 12, 2015 according to the firm StockzIntelligence Inc. M Partners maintained shares on October 30 with a “Buy” rating. Axiom Capital maintained shares with a”Buy” rating and a $92 target share price in their report from an October 28. Oppenheimer maintained BABA stock in a recent report from October 28 with a “Outperform” rating. Brean Capital maintained the rating on October 28. Brean Capital has a “Buy” rating and a $98 price target on shares. Finally, Wedbush maintained the stock with a “Neutral” rating in a report they issued on an October 28.
Alibaba Group Holding Limited is a holding company. The company has a market cap of $202.43 billion. The Firm is principally engaged in online and mobile commerce through products, services and technology. It has 21.97 P/E ratio. The Firm provides retail and wholesale marketplaces available through both personal computer and mobile interfaces in the PRC and internationally.