0422 GMT - Alibaba Group's long-term outlook remains promising despite weaker-than-expected profitability in the fiscal third quarter, say Daiwa analysts in a research note. Daiwa is "cautious than the consensus on profitability but constructive on Alibaba Cloud's medium‑term AI monetization," the analysts say, noting Alibaba increasing focus on monetization for its AI businesses. New AI business unit Token Hub is likely to be the "core monetization engine for scalable token consumption", they say. Developers use tokens to measure and pay for the AI's work. While food delivery losses remained high in December quarter, the analysts expect them to narrow in the next quarter. The analysts maintain a buy rating, but cut target price to HK$184.00 from HK$191.00. Shares last traded at HK$124.40. (tracy.qu@wsj.com)

(END) Dow Jones Newswires

March 20, 2026 00:22 ET (04:22 GMT)

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