Overview

• China e-commerce and cloud provider's Q3 revenue rose 2% yr/yr

• Adjusted EPS for Q3 fell 67% yr/yr

• Profit declines driven by investment in quick commerce, user experience, and technology

Outlook

• Alibaba says it will continue to scale investments in AI and cloud businesses

• Company expects quick commerce business to continue scaling with improved unit economics

• Alibaba sees strong liquidity position supporting sustained strategic investment

Result Drivers

• QUICK COMMERCE INVESTMENT - Co said profit declines were primarily due to increased investment in quick commerce, user experience, and technology

• CLOUD REVENUE GROWTH - Cloud Intelligence Group revenue rose 36% yr/yr, mainly due to public cloud and AI-related product adoption

• HIGHER COSTS - Cost of revenue and sales and marketing expenses rose, reflecting logistics, bandwidth, and user experience investments

Company press release: ID:nBw33dJF6a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 36 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Alibaba Group Holding Ltd is $198.00, about 47.3% above its March 18 closing price of $134.43

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 19 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)