Alibaba Group Holding (NYSE:BABA) May Be Next Player Following Facebook (FB) To Provide free Internet in India

Chinese Internet giant, Alibaba Group Holding Limited (NYSE:BABA) presented as an active mover, shares surged 0.51% to traded at $100.90 in most recent trading session. Alibaba might be the next major player following Facebook to try its hands on providing free Internet in India. A new report asserts that firm is in talks with telecom operators as well as Wi-Fi providers to offer free Internet services in the country.

The President of Overseas Business, Alibaba Mobile Business, Jack Huang told Business Insider India, “We will definitely look at the opportunity to work together with service providers or even some Wi-Fi providers. We are trying to offer lower cost data to users and better connectivity, even free of cost connectivity. Wi-Fi providers and other players can be potentials and we are in talk.”

Alibaba is declaredly still working on the plans around its free Internet service in India and is still in talks with “potential partners.” The Chinese company is considering providing free Internet services to states that have connectivity problems. “We actually think in geographic way because in India not every state is suffering from connectivity problem so we will focus more on providing this kind of services to states that are suffering more and also we will have comprehensive analysis on already existing consumers who will actually need this kind of service,” added Huang.

Financial Position In Focus

The firm has floated short ratio of 15.18%, hold to candle to sentiment indicator of Short Ratio, its stand at 9.84. Efficiency or profitability analysis gives an appropriate idea for investment decision; BABA attains returns on investment ratio of 7.20%, which suggests it’s viable on security that has lesser ROI. To strengthen this concept we can use profit margin, which is standing at positive 26.40%, and it is providing insight view about a variety of aspects of a firm’s financial performance. The operating profit margin and gross profit margin can be giving more focus view that is 27.60% and 63.70% respectively.

Turns back to returns ratios, returns on equity stands at 14.60%. Usually, financial analysts consider return on equity ratios in the 15-20% range as an attractive level of investment quality. Narrow down focus to firm performance, its weekly performance was -0.12% and monthly performance was 6.92%. The stock price of BABA is moving up from its 20 days moving average with 2.30% and isolated positively from 50 days moving average with 7.53%.

Darden Restaurants, Inc. (NYSE:DRI) attains noticeable attention, it slightly up 0.71% to traded at $72.33. DRI attains analyst recommendation of 2.60 on scale of 1-5 with week’s performance of -2.02%.

The firm has noticeable returns on equity ratio of 23.10%, which shows how much profit each dollar of ordinary stockholders’ equity generates. The returns on investment very popular metric among passive investors, it stands at 22.20%. To see the other side of depiction, profit margin of DRI stands at positive 6.20%; that indicates a firm actually every dollar of sales keeps in earnings. The 9.70% returns on assets present notable condition of firm. Mostly ROA known as a comparative measure, it is best to compare it against a firm’s previous ROA numbers or the ROA of a same firm.

To find out the technical position of DRI, it holds price to book ratio of 4.80 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 16.77, and price to earnings ratio calculated as 21. The price to earnings growth ration calculated as 1.63. DRI is presenting price to cash flow of 76.69 and free cash flow concluded as 24.33.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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