Where is Alibaba Group Holding Limited (BABA) Headed According to the Street?

Alibaba Group Holding Limited (NYSE:BABA) is one of the best long term low volatility stocks to invest in. On January 29, China Merchants Securities reiterated a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) and set a price target of HK$194.00. The rating update came the same day Reuters reported that Alibaba Group Holding Limited’s (NYSE:BABA) logistics arm, Cainiao, is set to buy stake in Chinese robovan developer Zelostech. The Wall Street Journal, which originally announced the news, reported that the deal would create a business valued at around $2 billion.

Reuters further reported that according to Zelostech, “Cainiao will not become a controlling shareholder of Zelostech”, and that Cainiao will “contribute its autonomous-driving business” to the deal and make a cash investment in the company. An emailed statement from Zelostech, according to Reuters, further stated that “Zelostech and Cainiao’s autonomous-driving unit have entered into a deep strategic integration, jointly building a RoboVan Super Carrier in the unmanned freight sector.”

The Journal reported that Cainiao’s autonomous-driving unit would be folded into Zelostech, and that the latter would operate both brands simultaneously.

Alibaba Group Holding Limited (NYSE:BABA) manages and provides technology infrastructure and marketing platforms. It operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others segments.

While we acknowledge the potential of BABA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.