YAHOO JAPAN stock rose over 11% during regular trading session on Friday. The increase was mainly because of a joint announcement and collaboration with Chinese e commerce giant Alibaba Group Holding Ltd. The increase is the highest ever recorded for the company in around a year, Bloomberg reported. conversely, stock of Alibaba lost ground and stood at $90.95 at market close on Friday.
Yahoo Japan is ranked amid the top 3 e-commerce firms in Japan. It was established as a joint venture between Softbank -a premier internet co. in japan and Yahoo Inc.
Yahoo Japan is ranked amid the top 3 e-commerce firms in Japan. It was established as a joint venture between Softbank -a premier internet co. in japan and Yahoo Inc.
Earlier on Friday, Bloomberg mentioned Yahoo Japan emailed statement, in which it confirms the alliance between the firms. The email stated that a collaboration with Alibaba will lead to several synergies, and support number of e-commerce firms from the country in reaching to large number of population in China. The company also said that the partnership was targeted at decreasing the internet companies charges in Japan that are looking to list on online marketplace of Alibaba namely, Tmall.
Tmall.com was previously spun off from the TaoBao platform of the company, approximately five years ago, and presently serving as a B2C marketplace for Alibaba. Tmall enable international brands and Chinese brands to do business in China with consumers. Moreover, the company also told Bloomberg, that the latest increase in demand of Japanese brands in China seems as a great opportunity to do alliance with Alibaba.
Hiroko Sato an analysts at jefferies was quoted by Bloomberg as supporting the collaboration between Alibaba and Yahoo Japan. He mentioned in a research report that an alliance with Alibaba would open open gates for the company to a $404 billion with of market, which is roughly 5 times bigger as compared to Japan market.
Significantly, new Chief Executive Office of Alibaba, Daniel Zhang talks about the significance of globalizing the marketplace of company. in his very first speech to its workers and staff as new CEO, he said, “We will organize a global team and adopt global thinking to manage the business, and achieve the goal of ‘global buy and global sell."
Majority of analyst are bullish on baba stock. Almost 51 covered the stock , 44 gave Buy rating, 5 assigned a Hold, and only 2 rated the stock as sell. The twelve month price target stands at $109.41,reflecting an upside of more than 20% compared to $90.95 closing price on Thursday.
No comments:
Post a Comment