Trending today is the announcement from Rob Sanderson, an MKM analyst, that the cloud business operated by Alibaba Group Holding Ltd (NYSE:BABA) could be worth $20 billion in five years, with an additional two or three billion dollars in other Asian countries. If this is the case, Alibaba's cloud business has immense growth potential and analysts are currently suggesting that it is worth one billion dollars annually with 115% growth rate annually.

Alibaba's cloud business has the potential to keep growing, in addition to the margins remaining strong. This segment could impel the company's stock to the level of Amazon Web Services, which has increased Amazon shares since the last five years. Presently, Amazon's cloud business averages $14 billion annually and is expected to continue growing at a rate of 47% annually. In light of this, Rob Sanderson supports a 'Buy' rating with a target price of $130.

(BABA) Alibaba Group Holding Ltd.