A new report from CITIC Securities highlights the future role of Alibaba’s cloud subsidiary in driving the company’s market value.
“Alibaba Cloud’s revenue and valuation growth will become a key factor supporting rises in the market value of Alibaba,” said the report from CITIC Securities, which maintained a “buy” rating for Alibaba Group’s Hong Kong and US-listed shares.
“Alibaba Cloud can be expected to further increase revenues in the market for government and enterprise digital transformation, and increase user stickiness.
“In future Alibaba Cloud will stress a shift from ‘technological advantages’ to ‘raising service capability,’ and expand from infrastructure services to industry applications, and from closed development to exploration of an open source ecosystem.”
Alibaba Cloud is a subsidiary of Alibaba Group that was first established in September 2009 to serve as the e-commerce giant’s cloud computing vehicle.
It is currently China’s largest cloud computing company, offering a range of cloud services on a pay-as-you-go basis including anti-DDoS protection, big data processing, elastic computing, data storage and relational databases.
A recent report from IDC found that Alibaba Cloud was the leading provider of financial cloud computing services in China, with a market share of over 18% in 2020.