Alibaba's Cloud Profitability Likely to Improve in Next Two Quarters -- Market Talk
Dow Jones
May 14
1018 GMT - Alibaba's cloud profitability is likely to improve "notably" in the next two quarters, according to HSBC analysts in a research note. The deployment of in-house chips and a shift toward higher-margin business, is likely to support the margin of its cloud unit, they say. HSBC lifts its cloud EBITA in fiscal year 2027-28 by 40%-50% on higher margin. This can lift the market's cloud valuation assumption, it adds. HSBC analysts maintain a buy rating, and lift the target price of its ADRs to US$180.00 from US$172.00. Its ADRs last closed US$145.81. (tracy.qu@wsj.com)
(END) Dow Jones Newswires
May 14, 2026 06:18 ET (10:18 GMT)
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