Citi has issued a research report stating that Alibaba (09988, BABA.US) demonstrated stable operational performance in the fourth quarter of 2025, with deep AI integration across all scenarios continuing to highlight its growth resilience. The gaming business continues to be driven by a dual strategy of long-term operation of classic IPs and global breakthroughs for new games. AI technology is applied throughout the entire process of development, gameplay, and operations, serving as a key tool for improving efficiency and enhancing player engagement. Non-gaming businesses showed some divergence, with Youdao's AI-native strategy achieving notable results. Looking ahead, a strong pipeline including titles such as "The Forgotten Sea" and "Infinity" provides ample support. The company's global, multi-platform, and AI-driven strategies create synergistic advantages, underscoring its long-term growth potential. The bank maintains a "Buy" rating, valuing the company at 16 times Non-GAAP PE for 2026, corresponding to a target price of $150 per ADR for the U.S. stock and HK$234 per share for the Hong Kong stock.