Buzz Stocks: CVS Health, Alibaba Group, and iDreamSky

U.S. equities are plunging after Greek debt talks failed over the weekend. In company news, today's stocks to watch include pharmacy chain CVS Health Corp (NYSE:CVS), e-commerce king Alibaba Group Holding Ltd (NYSE:BABA), and mobile gaming concern iDreamSky Technology Ltd (ADR) (NASDAQ:DSKY). 

• CVS announced it will buy Target Corporation's (NYSE:TGT) pharmacy and clinic units for nearly $2 billion. The businesses will be rebranded CVS/pharmacy and MinuteClinic, respectively. The news has shares of CVS Health Corp 0.4% higher out of the gate at $102.58, as they continue to consolidate atop the round-number century mark -- near their late-March all-time high of $105.46. On the sentiment front, analysts have grown bullish toward the stock, with 16 sporting "buy" or better ratings, compared to just one "hold" recommendation and not a single "sell." However, traders at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have been more skeptical, buying to open puts over calls at an accelerated clip in recent months -- per CVS' 50-day put/call volume ratio of 0.75, which sits in the 66th annual percentile.


• BABA has plans to launch a streaming video service in China within the next few months, in an effort to "redefine home entertainment" -- according to Patrick Liu, the firm's head of digital entertainment. In fact, Liu said the company's goal is to emulate the success of HBO and Netflix, Inc. (NASDAQ:NFLX). The Street is reacting well to the announcement, with Alibaba Group Holding Ltd up 0.4% out of the gate at $86.97. Longer term, though, negative price action is the norm, with the shares dropping more than 16% in 2015. Regardless, the brokerage crowd has kept the faith, as each of the 23 analysts tracking BABA rate it a "buy" or better. What's more, the stock's consensus 12-month price target of $107.62 stands at a 24% premium to current trading levels. This could pave the way for future downgrades and/or price-target reductions.


• Finally, DSKY has plummeted 11% this morning at $12.95, after the firm received a non-binding buyout bid of $14 per American Depositary Share (ADS) from CEO Michael Chen -- a discount to Friday's close at $14.56. This only adds to the stock's technical struggles. Since reaching a record high of $25.95 in early September, iDreamSky Technology Ltd has shed half of its value. Nevertheless, traders at the ISE, CBOE, and PHLX have bought to open calls over puts at a breakneck pace recently, per DSKY's 10-day call/put volume ratio of 15.33.