Jefferies Upbeat on Alibaba's (BABA) AI Cloud and Instant Commerce Growth
Pieter Beens / Shutterstock.com
The firm expects Alibaba's Cloud Intelligent Group to report a 23% year-over-year revenue increase—outpacing prior projections—while instant commerce platforms like Taobao and Eleme hit a daily order record of 80 million, signaling solid operational momentum.
Despite these gains, Jefferies flagged margin pressures due to heavy investment, forecasting a 15% decline in overall EBITA and a deeper 20% drop for the Taobao Tmall Group. Still, the firm remains optimistic about Alibaba's medium-term prospects, noting that strategic spending could boost long-term growth, especially in cloud and instant commerce segments.
Alibaba Group Holding Ltd (NYSE:BABA) is a major player in e-commerce and cloud services, with a growing focus on artificial intelligence as part of its expanding tech ecosystem.
While we acknowledge the potential of BABA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 15 Successful Spin-Off Companies and Their 2025 Returns and 12 Best Consumer Goods Stocks Billionaires Are Quietly Buying.
Disclosure: None. This article is originally published at Insider Monkey.
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