Alibaba (BABA) Stock Up, Cloud Division to Help Foreign Tech Enter China

NEW YORK (TheStreet) -- Shares of Alibaba Group  (BABA)  were up in pre-market trading on Tuesday after the Chinese e-commerce company said that it is looking to help international technology firms gain traction in China, Reuters reports.

The Chinese market is notoriously difficult for foreign tech companies as they face heightened government scrutiny.

China's government has become increasingly wary of foreign technology in recent months, and authorities have begun pushing consumers to use Chinese tech.

Alibaba Cloud is offering joint ventures and partnerships to foreign companies to ease government scrutiny over international products.

The company's AliLaunch program, aimed to help foreign firms overcome business obstacles in the country, already has 11 partners including German SAP (SAP), Japanese Hitachi (HTHIY) and American Appscale Systems.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "hole" with a ratings score of C.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

You can view the full analysis from the report here: BABA

If you liked this article you might like

Alibaba Could Rally Another 27% After Already Doubling in 2017

IPOs That Should Be on Your Radar

Wall Street Deflates in Pullback After Fed Excitement, No Records for Dow

Markets Recede From All-Time Highs on Tech Selloff