Latest news with #EddieWu
Business Insider
26-05-2025
- Business
- Business Insider
Is Alibaba Stock (BABA) a Buy, Hold, or Sell?
Alibaba (BABA) is doubling down on artificial intelligence, aiming to use it to transform online shopping and cloud services. It is using AI across its apps and cloud platform to improve customer experience, make business operations smoother, and stay ahead of the competition. At the recent Alibaba Cloud Go-Global Conference, CEO Eddie Wu said the company is now speeding up efforts to take its AI products overseas. This includes plans to roll out large language models like Qwen and Model Studio in global markets, helping Chinese businesses expand and growing Alibaba's presence worldwide. Confident Investing Starts Here: According to TipRanks AI analyst, BABA stock scored 81 out of 100 with an Outperform rating. Despite some near-term challenges, Wall Street remains optimistic about the stock. Notably, the stock is up 42% year-to-date and about 50% over the past year. Let's take a closer look at what's driving sentiment around BABA stock. BABA Stock's Bullish Case According to TipRanks AI analyst, Alibaba stock's strong score reflects solid financials, decent fourth-quarter earnings, and a fair valuation. A major reason behind this outlook is Alibaba's expanding role in artificial intelligence. The company is using AI in two key areas. It offers the cloud services that support AI development across China and also adds AI features to its own apps like Taobao and Tmall. As demand for AI grows—especially for training and running models—Alibaba is in a good spot to benefit both as a provider and as a user. During the latest earnings call, Alibaba's cloud division was a standout. Revenue rose by 18%, and profit margins came in better than expected, reflecting that the company is managing costs well and could see steady growth as more Chinese businesses turn to cloud-based AI solutions. Furthermore, in its main e-commerce segment, customer management revenue from Taobao and Tmall rose 12%, indicating that recent efforts to improve user experience and monetization are working. It also shows that Alibaba continues to hold strong in China's large and competitive online retail space. Near-Term Pressures Remain Still, there are some short-term challenges. Alibaba's investments in food delivery and logistics have reduced margins, and management expects these costs to stay elevated for now. The Local Services Group (LSG) and Cainiao logistics unit both reported losses that were larger than expected. While these areas are important for fast delivery and fulfillment, they have yet to scale efficiently. Is Alibaba Stock a Good Buy Right Now? Analysts remain highly bullish about Alibaba's stock trajectory. With 13 unanimous Buy ratings, BABA stock commands a Strong Buy consensus rating on TipRanks. Also, the average Alibaba price target of $164.50 implies 36.25% upside potential from current levels.
Yahoo
24-05-2025
- Business
- Yahoo
3 Signs That Alibaba's Turnaround Effort Is Bearing Fruit
E-commerce revenue growth accelerated in recent quarters. Artificial intelligence-related revenue grew by triple digits. Investors enjoyed $16.5 billion in buybacks and dividends. 10 stocks we like better than Alibaba Group › Alibaba Group (NYSE: BABA) has been on a journey of transformation over the past two years as it prepares for the next growth phase. In this process, the Chinese e-commerce giant almost completely reshuffled its senior leadership team (including its CEO), doubled down on core businesses, and paid more attention to delivering shareholder value. While its turnaround work is ongoing, there are early indicators that this effort has begun to deliver positive outcomes. Let's dive in and take a closer look. Once the undisputed leader in the Chinese e-commerce industry, Alibaba seems to have lost its way in the last few years as younger peers like Pinduoduo and Douyin gradually expanded their market share at the expense of the incumbent. But since Eddie Wu took over as Alibaba's CEO, he has brought new focus to the company by doubling down on core aspects of the business -- customer delight and artificial intelligence (AI) -- while axing unrelated companies, such as offline supermarkets. For instance, early this year, the tech conglomerate disposed of its shares in Sun Art, a brick-and-mortar supermarket, to focus on its core e-commerce platform business. So far, these efforts have already brought positive results to the business. For example, the Chinese e-commerce business reported 12% growth in customer management revenue in the quarter ended March 31, an acceleration from the 9% growth reported in the quarter ended Dec. 31, 2024. Comparatively, the customer management revenue growth rate was just 4% in the fiscal year ended March 31, 2024. It is also worth mentioning that 88VIP, the highest-spending customer group, grew by double digits year over year to more than 50 million. Beyond its Chinese e-commerce business, Alibaba's international e-commerce business grew 22% for the latest reported quarter. This business is highly diversified in regions (Europe, Asia, and the Gulf Region) and platforms (Aliexpress, Trendyol, etc.), providing enormous growth opportunities in the coming years. Once dubbed the rising star within Alibaba Group, Alibaba Cloud experienced a difficult period in fiscal 2024, when revenue grew at just 3% amid weak demand and competition. It didn't help that Alibaba Cloud cancelled its planned initial public offering, further impacting investor sentiment. Fortunately, things have turned for the better lately, as the business is growing again, leveraging the AI trend. In the latest quarter, revenue surged 18% to 30 billion yuan, driven mainly by faster public cloud revenue growth. In particular, AI-related revenue sustained triple-digit growth, the seventh consecutive quarter of triple-digit growth rates. The solid improvements in AI-related revenue were across a wide range of verticals, such as the internet, retail, manufacturing, and media. In other words, businesses are increasingly adopting cloud computing and AI offerings to improve their operations, suggesting that the AI adoption trend could continue for the foreseeable future. Internally, Alibaba Cloud continues to invest in the latest technology to ensure that it remains a leading contender in the AI race. For instance, it launched the Qwen 3 model, "a new generation of hybrid reasoning models that combine the capabilities of fast, simple responses and deeper chain-of-thought reasoning into a single model." This new model aims to deliver stronger performance at lower costs, making it highly appealing to enterprises and developers. Besides, Alibaba has committed to spending heavily on building the infrastructure needed to accommodate the expected increase in AI demand in the future, aiming to spend more than $50 billion in the next three years. In short, Alibaba Cloud is well-positioned to sustain its growth momentum in the coming years. For the latest fiscal year, Alibaba repurchased $11.9 billion of its stock (5.1% of the outstanding shares) and approved the distribution of $4.6 billion of annual and special dividends, returning $16.5 billion in cash to shareholders. And that's after returning $16.5 billion to investors in fiscal 2024. Alibaba's ongoing efforts to reward its shareholders are essential to building trust, especially as it seeks to rebuild confidence following years of regulatory pressure, slowing growth, and leadership transitions. It will also help attract investors, especially those from the Western markets, to hold the stock for the long term. Moreover, returning cash to investors also signals that the tech giant is in good financial shape, so much so that it can invest in growth and reward shareholders simultaneously. Alibaba's recent performance suggests that its turnaround efforts are gaining momentum and that the tech giant is much better positioned today than it was in the last few years. If it can sustain its growth momentum in the coming quarters, investors can be confident that the worst is over. All eyes are on for the next few quarters. Before you buy stock in Alibaba Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alibaba Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Lawrence Nga has positions in Alibaba Group. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy. 3 Signs That Alibaba's Turnaround Effort Is Bearing Fruit was originally published by The Motley Fool
Kuwait Times
17-05-2025
- Business
- Kuwait Times
Alibaba posts its annual revenue increase despite spending slump
BEIJING: Internet giant Alibaba posted on Thursday a six percent increase in annual revenue, the latest positive sign for China's tech sector despite persisting economic uncertainties that include sluggish spending and threatened trade. The Hangzhou-based company is one of the biggest players in China's tech industry, with operations spanning retail, digital payment, artificial intelligence and entertainment. This year has seen its share price rollercoaster on a wave of investor enthusiasm about Chinese AI capabilities that began in January, followed by a steep drop last month triggered by US President Donald Trump's global tariff blitz. The firm's revenue during the fiscal year ended March 31 totaled 996.3 billion yuan ($138.2 billion), according to results posted to the Hong Kong Stock Exchange, up six percent from the previous 12-month period. Net income attributable to ordinary shareholders rose to 129.5 billion yuan, the statement showed, a jump of 62 percent year-on-year according to AFP calculations. In the final quarter alone, Alibaba saw revenue of 236.5 billion yuan, narrowly coming up short of a Bloomberg forecast. Net income attributable to ordinary shareholders during the quarter reached 12.4 billion yuan, surging 279 percent from the low base of 3.3 billion yuan recorded during the same period last year. 'Our results this quarter and for the full fiscal year demonstrate the ongoing effectiveness of our 'user first, AI-driven' strategy, with core business growth continuing to accelerate,' CEO Eddie Wu said in a statement. The growth is another positive sign for China's tech sector, which has garnered revamped interest from investors since the shock release in January of advanced AI chatbot DeepSeek - apparently developed at a fraction of the cost thought necessary. Alibaba and fellow tech giants Tencent and Baidu are now funneling large sums into a new race to develop and integrate the most cutting-edge AI applications. Spending slump As the Chinese economy strains under sluggish spending and a tumultuous trade relationship with the United States, Beijing is increasingly looking to platforms operated by domestic internet giants as a cushion for employment and consumption. Prospects improved Monday when Beijing and Washington announced plans to significantly scale back sky-high tariffs that had severely threatened trade between the two nations. However, economists say that the Chinese economy may still struggle to achieve the official growth target set by leaders of around five percent this year. Alibaba's announcement on Thursday came after Tencent and e-commerce giant posted moderate increases in first-quarter revenue earlier this week, indicating a possible rebound in spending. But official figures released on Saturday showed that consumer prices remained mired in a slump last month, reflecting continued deflationary pressure. Alibaba was once a key subject of the aggressive regulatory crackdown launched in late 2020 on the domestic tech sector, attributed to worries in Beijing that top firms had become too powerful. Jack Ma, the firm's charismatic co-founder who had spoken boldly about the shortcomings of China's financial and regulatory system, kept a low profile during the lengthy campaign. He reappeared in February during a meeting with President Xi Jinping and other business luminaries - a shock development that suggested a warmer stance from Beijing and sent Alibaba stocks soaring. Ma is no longer an executive at Alibaba but is believed to retain a significant shareholding in the company. - AFP
Yahoo
17-05-2025
- Business
- Yahoo
Alibaba Shares Dip Despite E-commerce, AI growth in Q4
Alibaba shares fell Thursday as revenue growth failed to meet market expectations. In the three months ended March, revenue rose 7 percent to 236.5 million renminbi, or $32.5 billion, for the Chinese technology company, which fell slightly short of the 237.24 billion renminbi, or $32.9 billion, forecast by analysts surveyed by market data firm LSEG. More from WWD Tariffs Send Former Shein and Temu Shoppers To These Retailers Dior Notifies Chinese Consumers of Data Breach As US, China Tariff Saga Takes Another Turn, Footwear Firms Are Bracing for Mid August: Here's Why Shares fell around 7 percent in early trading. However, the group's stock has risen roughly 58 percent year-to-date as it pivoted toward AI and cloud computing. For the fiscal year ended March 31, revenue rose 6 percent to 996.3 billion renminbi, or $137.3 billion; annual net income attributable to ordinary shareholders surged 62 percent to 129.4 billion renminbi, or $17.8 billion. 'Our results this quarter and for the full fiscal year demonstrate the ongoing effectiveness of our 'user first, AI-driven' strategy, with core business growth continuing to accelerate,' said Eddie Wu, chief executive officer of Alibaba Group. Alibaba's core Taobao and Tmall group division saw its revenue grow 9 percent to 101.3 billion renminbi, or $13.9 billion, in the latest March quarter. The company highlighted that customer management growth, which includes marketing and related services that Alibaba sells to its merchants, jumped 12 percent year-over-year. Annual revenue for the Taobao and Tmall business segment grew 3 percent year-over-year from 449.8 billion renminbi, or $61.9 billion. With an ongoing mission to boost local consumption and gain an advantage over its rivals — such as Douyin and Pinduoduo — during this year's 618 online shopping festival, Alibaba struck up a strategic partnership with Xiaohongshu, China's popular social commerce platform, which will help the platform gain insight into the consumer journey. Alibaba is also expanding its fast delivery service called 'instant commerce,' which offers one-hour delivery via a network of brick-and-mortar retail partners and company-owned local warehouses. Meanwhile, revenue at Alibaba's International Digital Commerce Group, which focuses on businesses in the European market and the Gulf Region, jumped 22 percent to 33.5 billion renminbi, or $4.6 billion. Annual growth logged 29 percent jump to reach 132.3 billion renminbi, or $18.2 billion. Revenue at the company's Cloud Intelligence Group hiked 18 percent in the March quarter, with AI-related revenue posting triple-digit growth for the seventh consecutive quarter. Annual growth logged 11 percent to reach 118 billion renminbi, or $16.2 billion. During the earnings call, Wu also detailed AI's potential in legacy industries such as livestock farming and traditional manufacturing. 'This is a historical moment, the window of opportunity will have a lasting impact for the next ten to 20 years,' Wu said during the call. During the call, Jiang Fan, Alibaba's retail head, added that AI could also alter traditional e-commerce's algorithmic search and recommendation system. Best of WWD Retailers Leverage First Insight for ESG Alignment What Steph Curry's Sneaker NFTs Can Teach Fashion Year in Review: Brands, Retailers Go Hyper-digital in a Challenging Landscape
South China Morning Post
16-05-2025
- Business
- South China Morning Post
Alibaba cements AI leadership as cloud unit reports fastest growth since 2022
Alibaba Group Holding's cloud and artificial intelligence (AI) unit continued to deliver a strong performance in the fourth quarter of its financial year ended March 31, as the company pushes for the technology's increased adoption in more traditional industries. The company's cloud computing and AI unit reported an 18 per cent revenue increase for the March quarter, representing the unit's fastest growth since 2022, as AI-related sales recorded triple-digit growth for the seventh consecutive quarter. Alibaba owns the South China Morning Post. 'In cloud computing, it has clear market leadership as the backbone of digitalisation across different industries,' Jefferies analysts Thomas Chong and Zoey Zong said in a research note on Thursday. During an earnings call on Thursday, Alibaba chief executive Eddie Wu Yongming highlighted internet services, autonomous driving, financial services and online education as areas seeing faster AI adoption. Meanwhile, the Hangzhou-based company is seeing growing momentum from more traditional industries such as animal farming and manufacturing, he added. The logos of Alibaba and its Qwen AI model are seen in this illustration taken January 29, 2025. Photo: Reuters The company recently signed a major deal with the state-backed Industrial and Commercial Bank of China, which adopted Alibaba Cloud's database service PolarDB as its enterprise-wide transactional distributed database. 'This represents a strong endorsement of our technological capabilities by one of the most demanding financial institutions in terms of business performance and technology requirements,' Wu said.
