Exclusive-US probing China Telecom, China Mobile over internet, cloud risks By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 25 2024
0mins
Source: Investing.com
- Investigation of Chinese Telecom Companies: The Biden administration is investigating China Mobile, China Telecom, and China Unicom over concerns that they could exploit access to American data through their U.S. cloud and internet businesses.
- Regulatory Concerns and Actions: Regulators are concerned about potential risks posed by these companies accessing U.S. data and are considering blocking transactions that allow them to operate in data centers and route data for internet providers.
- National Security Risks: The investigation aims to prevent Beijing from exploiting Chinese firms' access to U.S. data to harm national security, companies, or Americans as part of the ongoing tech war between the U.S. and China.
- FCC's Involvement: The FCC has denied China Mobile's application to provide telephone service and revoked licenses of China Telecom and China Unicom due to concerns about misrouting internet traffic through China.
- Concerns about Data Centers: Investigators are also looking into the companies' U.S. cloud offerings, focusing on potential access to personal information and intellectual property stored in their clouds, particularly a data center owned by China Mobile in California's Silicon Valley.
Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BABA is 203.66 USD with a low forecast of 172.00 USD and a high forecast of 230.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 177.180
Low
172.00
Averages
203.66
High
230.00
Current: 177.180
Low
172.00
Averages
203.66
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through nine segments. The China Commerce Retail segment is engaged in the China commerce retail business. The China Commerce Wholesale segment is mainly engaged in the operation of 1688.com. The Cloud Intelligence segment provides cloud services. The International Commerce Retail segment provides customer management services, sales of goods and logistics services. The International Commerce Wholesale segment is mainly engaged in the operation of Alibaba.com. The Cainiao Represents Logistics Services segment provides fulfilment services. The Local Services segment’s revenue includes platform commissions, logistics services revenue. The Digital Media and Entertainment segment engages in the operation of Youku and Alibaba. The All Others segment is mainly engaged in the Sun Art, Freshippo and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
