A recent report indicates that Alibaba (BABA, Financial) has released financial results that align with market expectations. The company reported a 5.2% increase in total revenue year-over-year, reaching 236.5 billion RMB. However, its adjusted EBITDA has decreased by 5.3% to 40.6 billion RMB, slightly below the anticipated figure by 0.3%.
The report highlights how Alibaba's profitability has been impacted by investments in e-commerce, although losses in other business segments have considerably lessened. Alibaba aims to achieve a break-even point within the next one to two years.
Looking ahead, Alibaba is expected to see further improvements in its revenue growth in the next quarter. Notably, customer management revenue is projected to rise by approximately 5% year-over-year, driven by robust sales during the "Double 11" shopping festival. Additionally, the cloud services sector is anticipated to achieve double-digit revenue growth annually.
The company remains confident that more stimulus measures will bolster consumer activity. With stabilization in monetization rates, forecasts for adjusted net profit for 2025 to 2026 have been slightly revised, maintaining a target price of $125 and an "outperform" rating.
