Alibaba Group Holding Ltd. (NYSE:BABA) on Thursday posted weak fiscal third-quarter results.
The company posted quarterly revenue of $40.73 billion, up 2% year-over-year, missing the analyst consensus estimate of $41.26 billion. On a like-for-like basis, excluding revenue from the divested Sun Art and Intime businesses, Alibaba's revenue would have grown 9% Y/Y.
The adjusted earnings per American Depositary Share (ADS) came in at $1.01, missing the analyst consensus estimate of $1.73.
CEO Eddie Wu said Alibaba continued to invest heavily in AI and consumer businesses during the quarter, positioning AI as a key long-term growth driver. "AI is and will continue to be one of our primary growth engines," Wu said.
He noted that Cloud Intelligence revenue rose 36%, with AI-related products delivering a tenth straight quarter of triple-digit growth, while the Model-as-a-Service platform emerged as a new growth engine.
Alibaba shares fell 0.1% to trade at $124.82 on Friday.
These analysts made changes to their price targets on Alibaba following earnings announcement.
- Baird analyst Colin Sebastian maintained Alibaba with an Outperform rating and lowered the price target from $174 to $164.
- Barclays analyst Jiong Shao maintained the stock with an Overweight rating and cut the price target from $195 to $190.
- Mizuho analyst Jason Helfstein maintained Alibaba with an Outperform rating and lowered the price target from $195 to $190.
Considering buying BABA stock? Here’s what analysts think:
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