BABA faces margin pressure as e-commerce competition intensifies, with profits plunging despite revenue growth and heavy AI and logistics spending.
The 'Fast Money' traders talk Alibaba shares dipping on China worries.
Alibaba's tailwinds include strong generative AI demand and expansion beyond China. Its key challenges include increasing competition and regulatory uncertainty in China.
Alibaba (BABA) concluded the recent trading session at $152.24, signifying a +1.45% move from its prior day's close.
BABA shares slides 14.4% in three months as profits crater despite revenue growth, with heavy AI and cloud spending testing investor patience.
Alibaba (BABA) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Alibaba is transforming into a full-stack AI and cloud infrastructure leader, with its Cloud Intelligence Group now outpacing e-commerce growth. CIG revenues surged 34% year-over-year, driven by proprietary T-Head AI chips and dominant 34% market share in China's cloud infrastructure sector. BABA trades at a steep valuation discount to U.S. peers despite comparable growth and market dominance, suggesting significant upside potential if the gap narrows.
The Investment Committee reveals the stocks they're watching as the market sets up for its next move.
I downgraded Alibaba Group (BABA) heading into Q2 FY26 earnings on concerns of an EPS miss due to reinvestments in the quick commerce business. Sadly, I was right. EPS came in below expectaions, and shares are down high single digits since the earnings release. I now upgraded what I see as China's AI hyperscaler leader. The cloud business is growing at a healthy rate (34% yoy in Q2), and CapEx guidance was reiterated.
Alibaba Group Holding Limited (NYSE: BABA) continues to position itself as a major force in artificial intelligence and cloud computing as it invests to drive long-term growth.
BABA's RMB 380B AI and cloud capex plan clouds margin outlook as management guides to prolonged compression and unclear payoff timing.