Stocks Bytes: Alibaba Group Holding Ltd (NYSE:BABA), Micron Technology, Inc. (NASDAQ:MU), AT&T Inc. (NYSE:T)

Chinese e-commerce major Alibaba Group Holding Ltd (NYSE:BABA) after the company said it is likely to serve at least 50% of the population in China in the next one decade. Alibaba Group Holding Ltd (NYSE:BABA) is likely to experience rapid growth in e-commerce industry showing positive light.

Analysts said the Chinese e-commerce giant controls at least 80% of the market share in merchandise sales of the communist nation though the company caters to a quarter of the country’s population or less. Therefore, the analysts gave the company a buy rating with a target price of $118 per share on the grounds that Alibaba Group Holding Ltd (NYSE:BABA) could be catering to over 50 percent of the population in China within one decade.

Growth in monetization in mobile and TMall will help Alibaba Group Holding Ltd (NYSE:BABA) to grow.  Analysts give between 5% and 12% upside to their revenue estimate for the company during 2016 fiscal year.

On Monday, Micron Technology, Inc. (NASDAQ:MU) informed that the company’s board authorized it to buy back its shares for $1 billion. After three years, this is the first such repurchase attempts.

It is official now that last year AT&T Inc. (NYSE:T) slashed its prices of data and service on several of its popular plans. The idea was to woo higher numbers of users. However, there has been a concern in the company due to lower revenues per every user. Company insiders feel that AT&T Inc. (NYSE:T) committed a mistake of imitating rivals including Sprint and T-Mobile US in cutting prices.

Despite predictions that AT&T Inc. (NYSE:T) will end up with a lower revenue per customer, the company went ahead with the scheme and ended up with at least a 5 percent year-over-year loss by 2014 end. In addition to underperformance in subscription growth, the key problem with AT&T Inc. (NYSE:T) is that there is a decline in its per customer revenue.

The company witnessed a massive 8 percent tumble YoY after it excluded payments of monthly instalment on devices for plans like AT&T’s Next. The company registered an average user bill of just $62.45.

About the Author

Terrel is US Markets Daily's business news reporter. She joined US Markets Daily after five years as a print reporter.

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