Alibaba Group Holding Ltd (BABA) Potential Acquisition of a Chinese Newspaper Sends Stock South


Jack Ma, the foundered of Alibaba Group Holding Ltd (NYSE:BABA), is apparently in discussions with the Hong Kong-based South China Morning Post about a potential acquisition.

At this time, however, it is unknown if it will be Ma himself or Alibaba as a company that would ultimately acquire the newspaper. It should be interesting to follow this story as it develops further.
In the meantime, the stock is down 2.34% or $1.91 after the news, hitting $79.8 per share. About 2.35M shares traded hands. BABA has declined 3.38% since April 24, 2015 and is downtrending. It has underperformed by 2.26% the S&P500.

Out of 22 analysts covering Alibaba (NYSE:BABA), 20 rate it “Buy”, 0 “Sell”, while 2 “Hold”. This means 91% are positive. $137 is the highest target while $80 is the lowest. The $93.19 average target is 16.78% above today’s ($79.8) stock price. Alibaba was the topic in 48 analyst reports since August 12, 2015 according to StockzIntelligence Inc. M Partners maintained the stock on October 30 with “Buy” rating. Axiom Capital maintained it with “Buy” rating and $92 target price in an October 28 report. Oppenheimer maintained the shares of BABA in a report on October 28 with “Outperform” rating. Brean Capital maintained the firm’s rating on October 28. Brean Capital has “Buy” rating and $98 price target. Finally, Wedbush maintained the stock with “Neutral” rating in an October 28 report.

Alibaba Group Holding Limited is a holding company. The company has a market cap of $200.56 billion. The Firm is principally engaged in online and mobile commerce through products, services and technology. It has 30.74 P/E ratio. The Firm provides retail and wholesale marketplaces available through both personal computer and mobile interfaces in the PRC and internationally.