Jack Ma's Ant Group Eyes Healthcare Expansion with Haodf.com Acquisition, Profit Down Amid Regulatory Hurdles

Alibaba Group Holding Limited BABA fintech affiliate Ant Group is reportedly in talks to acquire the Chinese online healthcare platform Haodf.com.

The Jack Ma-backed fintech company aims to integrate its technology with Haodf.com which provides online consultations with doctors, Bloomberg cites familiar sources.

China’s chronic and autoimmune drug market is projected to grow at a compound annual growth rate of 27%, potentially reaching $20 billion by 2030, with AI likely playing a pivotal role, as per JP Morgan.

Also Read: Alibaba Q1 Earnings: Revenue Miss Amid Price War, Profit Beat, International Commerce and Cloud Segments Shine

Ant Group’s profit dropped by 10.2% during the June quarter to $539 million.

Ant Group has been battling intense domestic regulatory crackdowns since Chinese regulators scrapped its initial public offering at the last minute in 2020. The fintech giant remains engaged in various efforts to boost value.

In 2023, Ant Group spent $2.9 billion (21.2 billion yuan) on research to accomplish its artificial intelligence ambitions. Ant Group developed a large language model, BaiLing, which has powered AI assistants on its Alipay platform.

Ant Group’s other activities include collaborating with Mastercard Inc MA to expand digital payment zones in Chengdu and Chongqing in Western China.

Alibaba Stock Prediction for 2024

When buying a stock for a longer time horizon, it is important for investors to assess where they think the stock is headed in the future.

When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.

Alibaba's revenue has grown at an average rate of 15.81% annually over the past 5 years. The average 1-year price target from analysts is $103.0, representing an expected 23.24% upside in 2025.

While past performance is not a guarantee of future results, investors should also look at a stock's historical performance when compared to both a benchmark index and the company's peers. Shares of Alibaba have seen an annualized return of -23.33%, underperforming the S&P500 index by 30.69%. This compares to 1.19% growth in the overall Consumer Discretionary sector. Alibaba has a beta of 2.34.

Price Action: BABA shares were trading higher by 4.89% at $83.43 at the last check Friday.