Tencent Accelerates Cloud Expansion in the Middle East
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15h ago
0mins
Source: Benzinga
- Middle East Data Center Plans: Tencent Cloud CEO Dowson Tong stated that the company is actively exploring building data centers in the Middle East to support cloud customers, with plans to expand multiple 'availability zones' over the next 12 to 18 months to meet surging demand for AI and cloud services.
- Investment in Saudi Arabia: Tencent has already launched an availability zone in Saudi Arabia, serving clients including Keeta, the international food delivery arm of Meituan, indicating its market penetration and focus on strengthening local partnership networks in the region.
- Competitor Dynamics: Tencent's move aligns with the expansion trends of rivals like Alibaba and Microsoft, with Alibaba opening a second data center in Dubai to meet rising demand for cloud computing and AI, intensifying market competition.
- Strategic Investment Intent: As Big Tech companies pour billions into infrastructure in the Middle East, Tencent's expansion plans not only respond to market demand but also aim to enhance its global competitiveness by strengthening local service capabilities.
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: 171.370
Low
172.00
Averages
203.66
High
230.00
Current: 171.370
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.
