Alibaba Reports Strong Q2 Financial Results with Revenue Growth and AI-Driven Expansion

Alibaba announced its Q2 financial results, reporting revenue of RMB 247,795 million, a 5% year-over-year increase. The company achieved a net income of RMB 20,612 million and an adjusted net income of RMB 10,352 million. Earnings per share (EPS) stood at RMB 1.09, with an adjusted EPS of RMB 0.55. Revenue growth was driven by investments in one-hour delivery, cloud services, and AI-related products, with the Cloud Intelligence Group seeing 34% revenue growth. Despite a decline in operating income and adjusted EBITA due to investments in quick commerce and technology, Alibaba's focus on AI and enhanced efficiencies supported strong performance in e-commerce and cloud segments.

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- KekemonKekemon
  ·11-27
  No la. Is big investor want to buy it low. Create fear for the smaller one. 😂
  Why Did Alibaba's Stock "Open High and Close Low" After Earnings? Goldman Sachs: AI and Cloud Beat Expectations, but "Short-Term Volatility" Remarks in Call Fuel E-Commerce Concerns
  On November 25, Alibaba released its latest earnings report, delivering better-than-expected results in cloud revenue growth and AI capital expenditures, initially driving its stock up 4% in...
  Why Did Alibaba's Stock "Open High and Close Low" After Earnings? Goldman Sachs: AI and Cloud Beat Expectations, but "Short-Term Volatility" Remarks in Call Fuel E-Commerce Concerns
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- KekemonKekemon
  ·11-27
  No la. Is big investor want to buy it low. Create fear for the smaller one. 😂
  Why Did Alibaba's Stock "Open High and Close Low" After Earnings? Goldman Sachs: AI and Cloud Beat Expectations, but "Short-Term Volatility" Remarks in Call Fuel E-Commerce Concerns
  On November 25, Alibaba released its latest earnings report, delivering better-than-expected results in cloud revenue growth and AI capital expenditures, initially driving its stock up 4% in...
  Why Did Alibaba's Stock "Open High and Close Low" After Earnings? Goldman Sachs: AI and Cloud Beat Expectations, but "Short-Term Volatility" Remarks in Call Fuel E-Commerce Concerns
  37 Comment
  2
  Share
  Report

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Despite a decline in operating income and adjusted EBITA due to investments in quick commerce and technology, Alibaba's focus on AI and enhanced efficiencies supported strong performance in e-commerce and cloud segments.","image":"https://community-static.tradeup.com/news/1201dcc0482be040348fb8d4f228bb68","type":2,"style":4,"follow":false,"createTime":1764068305990,"userCounts":0,"rnLink":"https://laohu8.com/RN?name=RNTheme&page=/theme/special/finance&rndata={\"themeId\":04bd27023c5a159c86ef767c7ca75f34}&rnconfig={\"headerBarHidden\": true}","subscribe":false,"allowFollow":false,"hasReward":false,"rewardScore":0,"rewardValidDate":0,"rewardEnd":false,"symbols":["09988","BABA"],"tweetCounts":1,"categoryId":"2929bb7468f5415f853fd96fb35d7c3b","options":[],"votedOptionId":"","totalUserCount":0,"followStatus":false,"themeName":"Alibaba Reports Strong Q2 Financial Results with Revenue Growth and AI-Driven Expansion","tweetAmount":1,"imageIsDefault":false,"aiDerivativeIssues":[]},"tab":"all","isFinancial":true,"allList":[{"id":504698514812976,"gmtCreate":1764225647410,"gmtModify":1764225651734,"author":{"id":"3575949343225606","authorId":"3575949343225606","name":"Kekemon","avatar":"https://community-static.tradeup.com/news/acc569fb2b4b8cb1641acae354a1df48","crmLevel":12,"crmLevelSwitch":1,"followedFlag":false,"authorIdStr":"3575949343225606","idStr":"3575949343225606"},"themes":[],"title":"","htmlText":"No la. Is big investor want to buy it low. Create fear for the smaller one. 😂&nbsp;","listText":"No la. Is big investor want to buy it low. Create fear for the smaller one. 😂&nbsp;","text":"No la. Is big investor want to buy it low. Create fear for the smaller one. 😂","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/504698514812976","repostId":"1129338145","repostType":2,"repost":{"id":"1129338145","kind":"news","weMediaInfo":{"introduction":"Global Stock Market Deep Analysis","home_visible":1,"media_name":"Deep News","id":"1039043262","head_image":"https://community-static.tradeup.com/news/8296859682db4b478146245e72de1922"},"pubTimestamp":1764117028,"share":"https://ttm.financial/m/news/1129338145?lang=&edition=fundamental","pubTime":"2025-11-26 08:30","market":"fut","language":"en","title":"Why Did Alibaba's Stock \"Open High and Close Low\" After Earnings? Goldman Sachs: AI and Cloud Beat Expectations, but \"Short-Term Volatility\" Remarks in Call Fuel E-Commerce Concerns","url":"https://stock-news.laohu8.com/highlight/detail?id=1129338145","media":"Deep News","summary":"On November 25, Alibaba released its latest earnings report, delivering better-than-expected results in cloud revenue growth and AI capital expenditures, initially driving its stock up 4% in...","content":"<p>On November 25, Alibaba released its latest earnings report, delivering better-than-expected results in cloud revenue growth and AI capital expenditures, initially driving its stock up 4% in pre-market trading.</p>\n<p>However, the market optimism did not last. After the earnings call, the stock reversed course and closed down over 2%.</p>\n<p>According to trading desk sources, Goldman Sachs analyzed in its latest report that Alibaba's \"high-open, low-close\" performance was mainly attributed to heightened investor concerns over its e-commerce business. The report stated:</p>\n<p>We believe the negative stock reaction stems from: (1) the AI and cloud segment's outperformance reinforcing this year’s AI-driven narrative and valuation re-rating; yet (2) increased worries about e-commerce after management commented on the earnings call that customer management revenue (CMR) growth may slow due to intensifying competition and user investments, while China e-commerce EBITA could see quarterly volatility.</p>\n<p>During the earnings call, Alibaba CFO Toby Xu noted, \"Short-term volatility in customer management revenue and profits can be expected.\"</p>\n<p>Regarding CMR, base effects from payment service fees and site-wide promotions will have an impact. Since payment fees were introduced last September, growth is expected to decelerate starting next quarter due to this base effect.  \nHowever, as we’ve consistently emphasized, our top priority is securing long-term market share. In this process, we will continue decisive investments in consumers and merchants while advancing business model upgrades. Hence, short-term fluctuations in CMR and profits should be anticipated.</p>\n<p>Goldman Sachs views this commentary as the key trigger for the stock’s negative reaction. The bank noted that market concerns stem from \"fiercer e-commerce competition and user reinvestment,\" as well as high year-ago comparables from software service fees.</p>\n<p>**AI Narrative Strengthens: $53B Capex Target \"May Be Too Small,\" Cloud Outlook Upbeat**  \nIn contrast to e-commerce worries, Alibaba’s AI and cloud business emerged as the standout highlight of the earnings report.</p>\n<p>During the period, Alibaba Cloud revenue grew 34% YoY, surpassing Goldman’s 31% estimate. AI-related revenue now accounts for 20% of external customer revenue, marking the ninth consecutive quarter of triple-digit growth.</p>\n<p>Goldman Sachs highlighted Alibaba’s aggressive capital expenditure (CapEx) stance as further evidence of its AI commitment.</p>\n<p>The report showed Alibaba’s quarterly CapEx surged 80% YoY to RMB 32 billion, while rival Tencent’s CapEx declined. Goldman attributed Alibaba’s \"more aggressive CapEx plan\" to its \"AI infrastructure capabilities and full-stack AI products,\" likening it to Google’s proprietary TPU advantage.</p>\n<p>Management even suggested that the previously announced three-year $53 billion investment target \"may be too small,\" hinting at potential additional spending.</p>\n<p>Given strong AI demand, Goldman remains optimistic about Alibaba Cloud’s growth, forecasting December and March quarter growth of 38% and 37%, respectively.</p>\n<p>**Goldman Maintains Buy Rating, Sees AI Leadership and Narrowing Losses in On-Demand Retail**  \nIncorporating these factors, Goldman adjusted its Alibaba valuation. Due to a lower e-commerce valuation, it trimmed its 12-month SOTP-based price target from $205/HK$199 to $197/HK$192.</p>\n<p>Despite the cut, Goldman kept its \"Buy\" rating, citing unchanged cloud valuation and an \"intact AI-driven story.\"</p>\n<p>Its base-case scenario assumes \"Alibaba’s AI and cloud business will maintain its leadership in China, while core e-commerce profits stabilize and on-demand retail losses narrow in coming quarters.\"</p>\n<p>Analysts added that the market may be underestimating the potential of its international cloud business and the resulting \"globalization premium.\"</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Did Alibaba's Stock \"Open High and Close Low\" After Earnings? Goldman Sachs: AI and Cloud Beat Expectations, but \"Short-Term Volatility\" Remarks in Call Fuel E-Commerce Concerns</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Did Alibaba's Stock \"Open High and Close Low\" After Earnings? Goldman Sachs: AI and Cloud Beat Expectations, but \"Short-Term Volatility\" Remarks in Call Fuel E-Commerce Concerns\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1039043262\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/8296859682db4b478146245e72de1922);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Deep News </p>\n<p class=\"h-time\">2025-11-26 08:30</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>On November 25, Alibaba released its latest earnings report, delivering better-than-expected results in cloud revenue growth and AI capital expenditures, initially driving its stock up 4% in pre-market trading.</p>\n<p>However, the market optimism did not last. After the earnings call, the stock reversed course and closed down over 2%.</p>\n<p>According to trading desk sources, Goldman Sachs analyzed in its latest report that Alibaba's \"high-open, low-close\" performance was mainly attributed to heightened investor concerns over its e-commerce business. The report stated:</p>\n<p>We believe the negative stock reaction stems from: (1) the AI and cloud segment's outperformance reinforcing this year’s AI-driven narrative and valuation re-rating; yet (2) increased worries about e-commerce after management commented on the earnings call that customer management revenue (CMR) growth may slow due to intensifying competition and user investments, while China e-commerce EBITA could see quarterly volatility.</p>\n<p>During the earnings call, Alibaba CFO Toby Xu noted, \"Short-term volatility in customer management revenue and profits can be expected.\"</p>\n<p>Regarding CMR, base effects from payment service fees and site-wide promotions will have an impact. Since payment fees were introduced last September, growth is expected to decelerate starting next quarter due to this base effect.  \nHowever, as we’ve consistently emphasized, our top priority is securing long-term market share. In this process, we will continue decisive investments in consumers and merchants while advancing business model upgrades. Hence, short-term fluctuations in CMR and profits should be anticipated.</p>\n<p>Goldman Sachs views this commentary as the key trigger for the stock’s negative reaction. The bank noted that market concerns stem from \"fiercer e-commerce competition and user reinvestment,\" as well as high year-ago comparables from software service fees.</p>\n<p>**AI Narrative Strengthens: $53B Capex Target \"May Be Too Small,\" Cloud Outlook Upbeat**  \nIn contrast to e-commerce worries, Alibaba’s AI and cloud business emerged as the standout highlight of the earnings report.</p>\n<p>During the period, Alibaba Cloud revenue grew 34% YoY, surpassing Goldman’s 31% estimate. AI-related revenue now accounts for 20% of external customer revenue, marking the ninth consecutive quarter of triple-digit growth.</p>\n<p>Goldman Sachs highlighted Alibaba’s aggressive capital expenditure (CapEx) stance as further evidence of its AI commitment.</p>\n<p>The report showed Alibaba’s quarterly CapEx surged 80% YoY to RMB 32 billion, while rival Tencent’s CapEx declined. Goldman attributed Alibaba’s \"more aggressive CapEx plan\" to its \"AI infrastructure capabilities and full-stack AI products,\" likening it to Google’s proprietary TPU advantage.</p>\n<p>Management even suggested that the previously announced three-year $53 billion investment target \"may be too small,\" hinting at potential additional spending.</p>\n<p>Given strong AI demand, Goldman remains optimistic about Alibaba Cloud’s growth, forecasting December and March quarter growth of 38% and 37%, respectively.</p>\n<p>**Goldman Maintains Buy Rating, Sees AI Leadership and Narrowing Losses in On-Demand Retail**  \nIncorporating these factors, Goldman adjusted its Alibaba valuation. Due to a lower e-commerce valuation, it trimmed its 12-month SOTP-based price target from $205/HK$199 to $197/HK$192.</p>\n<p>Despite the cut, Goldman kept its \"Buy\" rating, citing unchanged cloud valuation and an \"intact AI-driven story.\"</p>\n<p>Its base-case scenario assumes \"Alibaba’s AI and cloud business will maintain its leadership in China, while core e-commerce profits stabilize and on-demand retail losses narrow in coming quarters.\"</p>\n<p>Analysts added that the market may be underestimating the potential of its international cloud business and the resulting \"globalization premium.\"</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU1688375341.USD":"贝莱德中国灵活股票基金","BK4588":"碎股","LU1823568750.SGD":"Fidelity Global Technology A-ACC SGD","LU0797268264.HKD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (HKD) ACC","LU2148611432.USD":"AZ ALLOCATION BALANCED BRAVE \"AAZ\" (USDHDG) ACC","BK4565":"NFT概念","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","LU1235294995.USD":"FIDELITY GLOBAL TECHNOLOGY \"A\" (USDHDG) ACC","LU0348816934.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (USD)","LU1282648689.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AMG\" (USD) INC","BK4503":"景林资产持仓","09988":"阿里巴巴-W","BK4502":"阿里概念","LU0047713382.USD":"BGF EMERGING MARKETS \"A2\" ACC","BK4505":"高瓴资本持仓","LU1051769294.HKD":"BGF EMERGING MARKETS EQUITY INCOME \"A6\"(HKDHDG) INC","LU2226246903.HKD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT4\" (HKD) ACC","LU1152091754.HKD":"UBS (LUX) EQUITY FUND - 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CHINA OPPORTUNITY (USD) \"PM\" INC","IE00BFMHRM44.USD":"NEUBERGER BERMAN GLOBAL EQUITY MEGATRENDS \"A\" (USD) ACC","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","BK4558":"双十一","BK4587":"ChatGPT概念","LU0501845795.SGD":"瑞银大中华区股票基金P Acc SGD","LU0067412154.USD":"UBS (LUX) EQUITY FUND -  CHINA OPPORTUNITY \"P\" (USD) ACC","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC"},"source_url":"","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1129338145","content_text":"On November 25, Alibaba released its latest earnings report, delivering better-than-expected results in cloud revenue growth and AI capital expenditures, initially driving its stock up 4% in pre-market trading.\nHowever, the market optimism did not last. After the earnings call, the stock reversed course and closed down over 2%.\nAccording to trading desk sources, Goldman Sachs analyzed in its latest report that Alibaba's \"high-open, low-close\" performance was mainly attributed to heightened investor concerns over its e-commerce business. The report stated:\nWe believe the negative stock reaction stems from: (1) the AI and cloud segment's outperformance reinforcing this year’s AI-driven narrative and valuation re-rating; yet (2) increased worries about e-commerce after management commented on the earnings call that customer management revenue (CMR) growth may slow due to intensifying competition and user investments, while China e-commerce EBITA could see quarterly volatility.\nDuring the earnings call, Alibaba CFO Toby Xu noted, \"Short-term volatility in customer management revenue and profits can be expected.\"\nRegarding CMR, base effects from payment service fees and site-wide promotions will have an impact. Since payment fees were introduced last September, growth is expected to decelerate starting next quarter due to this base effect.  \nHowever, as we’ve consistently emphasized, our top priority is securing long-term market share. In this process, we will continue decisive investments in consumers and merchants while advancing business model upgrades. Hence, short-term fluctuations in CMR and profits should be anticipated.\nGoldman Sachs views this commentary as the key trigger for the stock’s negative reaction. The bank noted that market concerns stem from \"fiercer e-commerce competition and user reinvestment,\" as well as high year-ago comparables from software service fees.\n**AI Narrative Strengthens: $53B Capex Target \"May Be Too Small,\" Cloud Outlook Upbeat**  \nIn contrast to e-commerce worries, Alibaba’s AI and cloud business emerged as the standout highlight of the earnings report.\nDuring the period, Alibaba Cloud revenue grew 34% YoY, surpassing Goldman’s 31% estimate. AI-related revenue now accounts for 20% of external customer revenue, marking the ninth consecutive quarter of triple-digit growth.\nGoldman Sachs highlighted Alibaba’s aggressive capital expenditure (CapEx) stance as further evidence of its AI commitment.\nThe report showed Alibaba’s quarterly CapEx surged 80% YoY to RMB 32 billion, while rival Tencent’s CapEx declined. Goldman attributed Alibaba’s \"more aggressive CapEx plan\" to its \"AI infrastructure capabilities and full-stack AI products,\" likening it to Google’s proprietary TPU advantage.\nManagement even suggested that the previously announced three-year $53 billion investment target \"may be too small,\" hinting at potential additional spending.\nGiven strong AI demand, Goldman remains optimistic about Alibaba Cloud’s growth, forecasting December and March quarter growth of 38% and 37%, respectively.\n**Goldman Maintains Buy Rating, Sees AI Leadership and Narrowing Losses in On-Demand Retail**  \nIncorporating these factors, Goldman adjusted its Alibaba valuation. Due to a lower e-commerce valuation, it trimmed its 12-month SOTP-based price target from $205/HK$199 to $197/HK$192.\nDespite the cut, Goldman kept its \"Buy\" rating, citing unchanged cloud valuation and an \"intact AI-driven story.\"\nIts base-case scenario assumes \"Alibaba’s AI and cloud business will maintain its leadership in China, while core e-commerce profits stabilize and on-demand retail losses narrow in coming quarters.\"\nAnalysts added that the market may be underestimating the potential of its international cloud business and the resulting \"globalization premium.\"","news_type":1,"symbols_score_info":{"ALBmain":1,"09988":1,"BABA":1}},"isVote":1,"tweetType":1,"viewCount":37,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"essenList":[{"id":504698514812976,"gmtCreate":1764225647410,"gmtModify":1764225651734,"author":{"id":"3575949343225606","authorId":"3575949343225606","name":"Kekemon","avatar":"https://community-static.tradeup.com/news/acc569fb2b4b8cb1641acae354a1df48","crmLevel":12,"crmLevelSwitch":1,"followedFlag":false,"idStr":"3575949343225606","authorIdStr":"3575949343225606"},"themes":[],"title":"","htmlText":"No la. Is big investor want to buy it low. Create fear for the smaller one. 😂&nbsp;","listText":"No la. Is big investor want to buy it low. Create fear for the smaller one. 😂&nbsp;","text":"No la. Is big investor want to buy it low. Create fear for the smaller one. 😂","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/504698514812976","repostId":"1129338145","repostType":2,"repost":{"id":"1129338145","kind":"news","weMediaInfo":{"introduction":"Global Stock Market Deep Analysis","home_visible":1,"media_name":"Deep News","id":"1039043262","head_image":"https://community-static.tradeup.com/news/8296859682db4b478146245e72de1922"},"pubTimestamp":1764117028,"share":"https://ttm.financial/m/news/1129338145?lang=&edition=fundamental","pubTime":"2025-11-26 08:30","market":"fut","language":"en","title":"Why Did Alibaba's Stock \"Open High and Close Low\" After Earnings? Goldman Sachs: AI and Cloud Beat Expectations, but \"Short-Term Volatility\" Remarks in Call Fuel E-Commerce Concerns","url":"https://stock-news.laohu8.com/highlight/detail?id=1129338145","media":"Deep News","summary":"On November 25, Alibaba released its latest earnings report, delivering better-than-expected results in cloud revenue growth and AI capital expenditures, initially driving its stock up 4% in...","content":"<p>On November 25, Alibaba released its latest earnings report, delivering better-than-expected results in cloud revenue growth and AI capital expenditures, initially driving its stock up 4% in pre-market trading.</p>\n<p>However, the market optimism did not last. After the earnings call, the stock reversed course and closed down over 2%.</p>\n<p>According to trading desk sources, Goldman Sachs analyzed in its latest report that Alibaba's \"high-open, low-close\" performance was mainly attributed to heightened investor concerns over its e-commerce business. The report stated:</p>\n<p>We believe the negative stock reaction stems from: (1) the AI and cloud segment's outperformance reinforcing this year’s AI-driven narrative and valuation re-rating; yet (2) increased worries about e-commerce after management commented on the earnings call that customer management revenue (CMR) growth may slow due to intensifying competition and user investments, while China e-commerce EBITA could see quarterly volatility.</p>\n<p>During the earnings call, Alibaba CFO Toby Xu noted, \"Short-term volatility in customer management revenue and profits can be expected.\"</p>\n<p>Regarding CMR, base effects from payment service fees and site-wide promotions will have an impact. Since payment fees were introduced last September, growth is expected to decelerate starting next quarter due to this base effect.  \nHowever, as we’ve consistently emphasized, our top priority is securing long-term market share. In this process, we will continue decisive investments in consumers and merchants while advancing business model upgrades. Hence, short-term fluctuations in CMR and profits should be anticipated.</p>\n<p>Goldman Sachs views this commentary as the key trigger for the stock’s negative reaction. The bank noted that market concerns stem from \"fiercer e-commerce competition and user reinvestment,\" as well as high year-ago comparables from software service fees.</p>\n<p>**AI Narrative Strengthens: $53B Capex Target \"May Be Too Small,\" Cloud Outlook Upbeat**  \nIn contrast to e-commerce worries, Alibaba’s AI and cloud business emerged as the standout highlight of the earnings report.</p>\n<p>During the period, Alibaba Cloud revenue grew 34% YoY, surpassing Goldman’s 31% estimate. AI-related revenue now accounts for 20% of external customer revenue, marking the ninth consecutive quarter of triple-digit growth.</p>\n<p>Goldman Sachs highlighted Alibaba’s aggressive capital expenditure (CapEx) stance as further evidence of its AI commitment.</p>\n<p>The report showed Alibaba’s quarterly CapEx surged 80% YoY to RMB 32 billion, while rival Tencent’s CapEx declined. Goldman attributed Alibaba’s \"more aggressive CapEx plan\" to its \"AI infrastructure capabilities and full-stack AI products,\" likening it to Google’s proprietary TPU advantage.</p>\n<p>Management even suggested that the previously announced three-year $53 billion investment target \"may be too small,\" hinting at potential additional spending.</p>\n<p>Given strong AI demand, Goldman remains optimistic about Alibaba Cloud’s growth, forecasting December and March quarter growth of 38% and 37%, respectively.</p>\n<p>**Goldman Maintains Buy Rating, Sees AI Leadership and Narrowing Losses in On-Demand Retail**  \nIncorporating these factors, Goldman adjusted its Alibaba valuation. Due to a lower e-commerce valuation, it trimmed its 12-month SOTP-based price target from $205/HK$199 to $197/HK$192.</p>\n<p>Despite the cut, Goldman kept its \"Buy\" rating, citing unchanged cloud valuation and an \"intact AI-driven story.\"</p>\n<p>Its base-case scenario assumes \"Alibaba’s AI and cloud business will maintain its leadership in China, while core e-commerce profits stabilize and on-demand retail losses narrow in coming quarters.\"</p>\n<p>Analysts added that the market may be underestimating the potential of its international cloud business and the resulting \"globalization premium.\"</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Did Alibaba's Stock \"Open High and Close Low\" After Earnings? Goldman Sachs: AI and Cloud Beat Expectations, but \"Short-Term Volatility\" Remarks in Call Fuel E-Commerce Concerns</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Did Alibaba's Stock \"Open High and Close Low\" After Earnings? Goldman Sachs: AI and Cloud Beat Expectations, but \"Short-Term Volatility\" Remarks in Call Fuel E-Commerce Concerns\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1039043262\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/8296859682db4b478146245e72de1922);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Deep News </p>\n<p class=\"h-time\">2025-11-26 08:30</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>On November 25, Alibaba released its latest earnings report, delivering better-than-expected results in cloud revenue growth and AI capital expenditures, initially driving its stock up 4% in pre-market trading.</p>\n<p>However, the market optimism did not last. After the earnings call, the stock reversed course and closed down over 2%.</p>\n<p>According to trading desk sources, Goldman Sachs analyzed in its latest report that Alibaba's \"high-open, low-close\" performance was mainly attributed to heightened investor concerns over its e-commerce business. The report stated:</p>\n<p>We believe the negative stock reaction stems from: (1) the AI and cloud segment's outperformance reinforcing this year’s AI-driven narrative and valuation re-rating; yet (2) increased worries about e-commerce after management commented on the earnings call that customer management revenue (CMR) growth may slow due to intensifying competition and user investments, while China e-commerce EBITA could see quarterly volatility.</p>\n<p>During the earnings call, Alibaba CFO Toby Xu noted, \"Short-term volatility in customer management revenue and profits can be expected.\"</p>\n<p>Regarding CMR, base effects from payment service fees and site-wide promotions will have an impact. Since payment fees were introduced last September, growth is expected to decelerate starting next quarter due to this base effect.  \nHowever, as we’ve consistently emphasized, our top priority is securing long-term market share. In this process, we will continue decisive investments in consumers and merchants while advancing business model upgrades. Hence, short-term fluctuations in CMR and profits should be anticipated.</p>\n<p>Goldman Sachs views this commentary as the key trigger for the stock’s negative reaction. The bank noted that market concerns stem from \"fiercer e-commerce competition and user reinvestment,\" as well as high year-ago comparables from software service fees.</p>\n<p>**AI Narrative Strengthens: $53B Capex Target \"May Be Too Small,\" Cloud Outlook Upbeat**  \nIn contrast to e-commerce worries, Alibaba’s AI and cloud business emerged as the standout highlight of the earnings report.</p>\n<p>During the period, Alibaba Cloud revenue grew 34% YoY, surpassing Goldman’s 31% estimate. AI-related revenue now accounts for 20% of external customer revenue, marking the ninth consecutive quarter of triple-digit growth.</p>\n<p>Goldman Sachs highlighted Alibaba’s aggressive capital expenditure (CapEx) stance as further evidence of its AI commitment.</p>\n<p>The report showed Alibaba’s quarterly CapEx surged 80% YoY to RMB 32 billion, while rival Tencent’s CapEx declined. Goldman attributed Alibaba’s \"more aggressive CapEx plan\" to its \"AI infrastructure capabilities and full-stack AI products,\" likening it to Google’s proprietary TPU advantage.</p>\n<p>Management even suggested that the previously announced three-year $53 billion investment target \"may be too small,\" hinting at potential additional spending.</p>\n<p>Given strong AI demand, Goldman remains optimistic about Alibaba Cloud’s growth, forecasting December and March quarter growth of 38% and 37%, respectively.</p>\n<p>**Goldman Maintains Buy Rating, Sees AI Leadership and Narrowing Losses in On-Demand Retail**  \nIncorporating these factors, Goldman adjusted its Alibaba valuation. Due to a lower e-commerce valuation, it trimmed its 12-month SOTP-based price target from $205/HK$199 to $197/HK$192.</p>\n<p>Despite the cut, Goldman kept its \"Buy\" rating, citing unchanged cloud valuation and an \"intact AI-driven story.\"</p>\n<p>Its base-case scenario assumes \"Alibaba’s AI and cloud business will maintain its leadership in China, while core e-commerce profits stabilize and on-demand retail losses narrow in coming quarters.\"</p>\n<p>Analysts added that the market may be underestimating the potential of its international cloud business and the resulting \"globalization premium.\"</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU1688375341.USD":"贝莱德中国灵活股票基金","BK4588":"碎股","LU1823568750.SGD":"Fidelity Global Technology A-ACC SGD","LU0797268264.HKD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (HKD) ACC","LU2148611432.USD":"AZ ALLOCATION BALANCED BRAVE \"AAZ\" (USDHDG) ACC","BK4565":"NFT概念","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","LU1235294995.USD":"FIDELITY GLOBAL TECHNOLOGY \"A\" (USDHDG) ACC","LU0348816934.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (USD)","LU1282648689.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AMG\" (USD) INC","BK4503":"景林资产持仓","09988":"阿里巴巴-W","BK4502":"阿里概念","LU0047713382.USD":"BGF EMERGING MARKETS \"A2\" ACC","BK4505":"高瓴资本持仓","LU1051769294.HKD":"BGF EMERGING MARKETS EQUITY INCOME \"A6\"(HKDHDG) INC","LU2226246903.HKD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT4\" (HKD) ACC","LU1152091754.HKD":"UBS (LUX) EQUITY FUND - 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After the earnings call, the stock reversed course and closed down over 2%.\nAccording to trading desk sources, Goldman Sachs analyzed in its latest report that Alibaba's \"high-open, low-close\" performance was mainly attributed to heightened investor concerns over its e-commerce business. The report stated:\nWe believe the negative stock reaction stems from: (1) the AI and cloud segment's outperformance reinforcing this year’s AI-driven narrative and valuation re-rating; yet (2) increased worries about e-commerce after management commented on the earnings call that customer management revenue (CMR) growth may slow due to intensifying competition and user investments, while China e-commerce EBITA could see quarterly volatility.\nDuring the earnings call, Alibaba CFO Toby Xu noted, \"Short-term volatility in customer management revenue and profits can be expected.\"\nRegarding CMR, base effects from payment service fees and site-wide promotions will have an impact. Since payment fees were introduced last September, growth is expected to decelerate starting next quarter due to this base effect.  \nHowever, as we’ve consistently emphasized, our top priority is securing long-term market share. In this process, we will continue decisive investments in consumers and merchants while advancing business model upgrades. Hence, short-term fluctuations in CMR and profits should be anticipated.\nGoldman Sachs views this commentary as the key trigger for the stock’s negative reaction. The bank noted that market concerns stem from \"fiercer e-commerce competition and user reinvestment,\" as well as high year-ago comparables from software service fees.\n**AI Narrative Strengthens: $53B Capex Target \"May Be Too Small,\" Cloud Outlook Upbeat**  \nIn contrast to e-commerce worries, Alibaba’s AI and cloud business emerged as the standout highlight of the earnings report.\nDuring the period, Alibaba Cloud revenue grew 34% YoY, surpassing Goldman’s 31% estimate. AI-related revenue now accounts for 20% of external customer revenue, marking the ninth consecutive quarter of triple-digit growth.\nGoldman Sachs highlighted Alibaba’s aggressive capital expenditure (CapEx) stance as further evidence of its AI commitment.\nThe report showed Alibaba’s quarterly CapEx surged 80% YoY to RMB 32 billion, while rival Tencent’s CapEx declined. Goldman attributed Alibaba’s \"more aggressive CapEx plan\" to its \"AI infrastructure capabilities and full-stack AI products,\" likening it to Google’s proprietary TPU advantage.\nManagement even suggested that the previously announced three-year $53 billion investment target \"may be too small,\" hinting at potential additional spending.\nGiven strong AI demand, Goldman remains optimistic about Alibaba Cloud’s growth, forecasting December and March quarter growth of 38% and 37%, respectively.\n**Goldman Maintains Buy Rating, Sees AI Leadership and Narrowing Losses in On-Demand Retail**  \nIncorporating these factors, Goldman adjusted its Alibaba valuation. Due to a lower e-commerce valuation, it trimmed its 12-month SOTP-based price target from $205/HK$199 to $197/HK$192.\nDespite the cut, Goldman kept its \"Buy\" rating, citing unchanged cloud valuation and an \"intact AI-driven story.\"\nIts base-case scenario assumes \"Alibaba’s AI and cloud business will maintain its leadership in China, while core e-commerce profits stabilize and on-demand retail losses narrow in coming quarters.\"\nAnalysts added that the market may be underestimating the potential of its international cloud business and the resulting \"globalization premium.\"","news_type":1,"symbols_score_info":{"ALBmain":1,"09988":1,"BABA":1}},"isVote":1,"tweetType":1,"viewCount":37,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"allBottom":false,"essenBottom":false,"topicSource":"Post"}

Alibaba Reports Strong Q2 Financial Results with Revenue Growth and AI-Driven Expansion

Why Did Alibaba's Stock "Open High and Close Low" After Earnings? Goldman Sachs: AI and Cloud Beat Expectations, but "Short-Term Volatility" Remarks in Call Fuel E-Commerce Concerns

Why Did Alibaba's Stock "Open High and Close Low" After Earnings? Goldman Sachs: AI and Cloud Beat Expectations, but "Short-Term Volatility" Remarks in Call Fuel E-Commerce Concerns