Alibaba Cloud – the cloud computing arm of Alibaba Group Holding Limited, recently recorded the financial results for the quarter ending June 30, 2017.
It achieved the mark of 1 million paying customers which is an increase of 137,000 customers from the previous quarter results.
The revenue also jumped to 96% year-over-year to RMB 2,431 million (US $359 million).
The company considers growing base of paying customers and revenue mix coming from value-added services as the major reason behind the exponential results and high price targets set by stock brokers.
The quarter witnessed certain new developments launched by Alibaba Cloud. This included new products like Cloud Storage Gateway and Lightning Cube that lowered cloud migration barriers for traditional companies. The company plans to continue its efforts to expand Elastic Computing Service product portfolio.
One of the analysts, Raymond James put the price target on Alibaba at $220 representing a 34 percent rise.
Per the analysts, the stock will be supported by controlled investment in high-performing areas. The cloud-driven re-rating of the stock will support company’s future growth strategies.
The current cloud computing customer base of Alibaba includes several industries and businesses, with industry segments ranging from consumer brands, financial institutions, energy, healthcare, media to manufacturing and retail.
The continued success of cloud business will help the company plan its global expansion, covering areas outside China and parts of Europe. The company earlier announced its plans to establish new data centers in Malaysia, India and Indonesia and with this, its global presence will reach to 14 countries.