NEW YORK (TheStreet) -- Alibaba Group Holding (BABA) - Get Report  shares are rallying 1.69% to $83.61 on Friday after company VP Yu Sicheng addressed measures the company is taking to mitigate data and cloud security concerns, ZDnet.com reports.

This comes as there have been security fears such as spying when China tech vendors often deal with U.S. customers.

"First, China's international business is a Singapore business that is governed by a US-listed company," Sicheng said. "It follows Singapore laws in terms of data privacy as well as all commercial contracts involving those with our customers and partners."

In addition, Sicheng mentioned that the headquarters are working to boost security measures.

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Overall, the company has been working to protect user data on its cloud-computing platforms globally. For instance, in July, Alibaba's cloud-computing unit, called Aliyun, said that customers would have "absolute ownership" of all of their data, the Wall Street Journal reports. 

Separately, TheStreet Ratings team rates ALIBABA GROUP HLDG as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate ALIBABA GROUP HLDG (BABA) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • BABA has underperformed the S&P 500 Index, declining 18.77% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • ALIBABA GROUP HLDG reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($16.18 versus $1.59).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 571.9% when compared to the same quarter one year prior, rising from $514.69 million to $3,458.36 million.
  • Although BABA's debt-to-equity ratio of 0.28 is very low, it is currently higher than that of the industry average.
  • The gross profit margin for ALIBABA GROUP HLDG is currently very high, coming in at 71.73%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 101.46% significantly outperformed against the industry average.
  • You can view the full analysis from the report here: BABA