As global tech giants increasingly pivot to digital ecosystems, industry leaders like Alibaba Group Holding Ltd BABA are capitalizing on the shift by enhancing their cloud services and expanding e-commerce capabilities. This strategic focus is particularly crucial as companies navigate evolving consumer behaviors and competitive pressures in the tech landscape.

Alibaba’s fundamentals are strengthening across the cloud and e-commerce segments, according to Benchmark.

The Alibaba Group Holding Analyst: Analyst Fawne Jiang reiterated a Buy rating, while raising the price target to $195.

The Alibaba Group Holding Thesis: While the company missed the fiscal first-quarter headline consensus, this was mainly due to certain asset divestitures and margin pressure from a spike in Quick Commerce investment, Jiang said in the note.

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Alibaba's Cloud segment delivered 26% year-on-year growth, beating expectations, and the company guided to further acceleration, which reinforces "its position as China's leading GenAI and cloud infrastructure provider," he commented.

While Quick Commerce pressurized margins, "we view it as having strategic potential to be accretive, expanding long term GMV TAM, driving user traffic, and supporting long-term ad revenue upside," the analyst wrote.

Alibaba appears poised for market share gains and multiple expansion, he further stated.

BABA Price Action: Alibaba Gr Hldgs shares were up 1.48% at $137.00 at the time of publication on Tuesday. The stock is trading within its 52-week range of $80.06 to $148.43, according to Benzinga Pro data.

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