Alibaba Q3 Is Critical - But Not A Catalyst
Alibaba remains a "Buy," with shares materially undervalued ahead of next week's Q3 earnings report. Alibaba's cloud revenue surged 34% YoY, driven by strong AI-related demand, but heavy capex pressured operating income and free cash flow. Valuation suggests $176–$200 per share is achievable if normalized EPS targets of $9–$11 materialize by FY 2027-2028.
AMZN's AWS surge, $244 billion backlog and $200 billion AI spend highlight its edge over Alibaba amid BABA's profit slump and rising competition.
| Specialty Retail Industry | Consumer Discretionary Sector | Yongming Wu CEO | XHAN Exchange | US01609W1027 ISIN |
| CN Country | 124,320 Employees | 12 Jun 2025 Last Dividend | - Last Split | - IPO Date |
Alibaba Group Holding Limited is a technological giant that offers an extensive range of services that facilitate merchants, brands, retailers, and other businesses to efficiently engage with their users and customers, not only within the People's Republic of China but also on an international scale. The conglomerate composition of Alibaba Group is manifested through its operation across seven segments, namely China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others. Established in 1999 and headquartered in Hangzhou, China, Alibaba Group has revolutionized the e-commerce, digital media, and technology sectors through its innovative solutions and extensive reach.