Alibaba Group Holding Limited (NYSE:BABA) Fintech subsidiary Ant Group is reportedly in talks to acquire Chinese online healthcare platform Haodf.com.
The Jack Ma-backed fintech company intends to integrate its technology with Haodf.com, which offers online consultations with doctors, Bloomberg cited familiar sources.
According to JP Morgan, the Chinese market for drugs for chronic diseases and autoimmune disorders is expected to grow at a compound annual growth rate of 27% and may reach $20 billion by 2030. AI is likely to play a crucial role in this.
Also read: Alibaba Q1 results: Sales decline in price war, profit jump, international trade and cloud segments shine
Ant Group’s profit fell 10.2% to $539 million in the June quarter.
Ant Group has been battling fierce domestic regulatory crackdowns since Chinese regulators canceled the company’s IPO at the last moment in 2020. The fintech giant continues to make various efforts to increase its value.
In 2023, Ant Group spent $2.9 billion (21.2 billion yuan) on research to realize its artificial intelligence ambitions. Ant Group developed a large language model, BaiLing, that powers AI assistants on its Alipay platform.
Other activities of the Ant Group include cooperation with Mastercard Inc (NYSE:MA) expands digital payment zones in Chengdu and Chongqing in western China.
Alibaba Stock Forecast for 2024
When purchasing a stock for a longer time horizon, it is important for investors to assess where they think the stock will go in the future.
When planning the future performance of a stock, investors should consider factors such as future earnings expectations and expected performance compared to a benchmark.
Alibaba’s revenue has grown at an average annual rate of 15.81% over the past 5 years. The average 1-year analyst price target is $103.00, which represents an expected upside of 23.24% in 2025.
Although past performance is no guarantee of future results, investors should also look at a stock’s historical performance relative to a benchmark index and the company’s peers. Alibaba shares delivered an annualized return of -23.33%, underperforming the S&P500 index by 30.69%. This compares to growth of 1.19% for the overall consumer discretionary sector. Alibaba has a beta of 2.34.
Price promotion: BABA shares were trading 4.89% higher at $83.43 at last check on Friday.
“THE SECRET WEAPON OF ACTIVE INVESTORS” Up your stock game with the #1 trading tool for “news and everything else”: Benzinga Pro – Click here to start your 14-day trial now!
Want to get the latest stock analysis from Benzinga?
This article “Jack Ma’s Ant Group seeks healthcare expansion with Haodf.com acquisition, profits fall on regulatory hurdles” originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
