Latest news with #RonaldKeung
Yahoo
11-02-2025
- Business
- Yahoo
Alibaba Cloud's Growth Accelerates With AI, Analyst Weighs DeepSeek's Rising Competition
Goldman Sachs analyst Ronald Keung maintained a Buy on Alibaba Group Holdings (NYSE:BABA) with a price target of $117. Keung noted Alibaba's Qwen2.5 family continues to gain traction in Huggingface's latest Open LLM Leaderboard. The analyst noted that Alibaba's recent share price outperformance versus the sector (since its Qwen2.5 model launches) has been potentially due to the leading benchmark performances of its latest Qwen2.5-Max. Apple's AI Split: Chooses Alibaba For China And OpenAI For Everyone Else Investor focus is likely on the value of Alibaba Cloud as China's largest cloud hyperscaler, where he valued Alibaba Cloud at 3 times revenue versus Inc (NASDAQ:AMZN) Amazon Web Services at 7 times revenue. The analyst expects a sequentially stronger core domestic eCommerce performance, which the appliance trade-in program will help, a software service fee boost, and continued acceleration in cloud revenue growth. With Alibaba's upcoming December quarter results, Keung forecasted group revenue growth of 7% and Alibaba Cloud revenue growth, which he expects to accelerate to 10% for the December 2024 quarter and 12% for the March 2025 quarter (from 7% in the September 2024 quarter). The analyst expects an acceleration of cloud revenue growth across China cloud service providers (CSPs) in 2025E on increased revenue contribution from the margin-accretive generative AI-driven business. Keung noted the continued progress of open-source models at competitive performance and costs versus closed-source, with the increasing availability of open-source models supported by global cloud service providers. He noted increasingly agile Chinese models and significant improvement in computing cost efficiencies could drive further room for broader adoption, exploration, the proliferation of AI applications, and potential for global expansion for Chinese players, assuming Chinese companies can continue to tap computing power and chips. However, Keung flagged a rise in competition between capital-rich internet giants versus affordable start-ups like Deep Seek in the model layer, given lowering barriers to entry, an ongoing shift from training to more inferencing, and ongoing geopolitical uncertainties. Yet Keung remained positive on long-term AI computing demand growth as further lowering of training and inference costs could drive higher AI adoption. Price Action: BABA stock is up 1.99% at $113.53 at the last check on Tuesday. Also Read:Photo courtesy: Shutterstock Date Firm Action From To Feb 2022 Barclays Maintains Overweight Feb 2022 Stifel Maintains Buy Feb 2022 Citigroup Maintains Buy View More Analyst Ratings for BABA View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? ALIBABA GR HLDGS (BABA): Free Stock Analysis Report This article Alibaba Cloud's Growth Accelerates With AI, Analyst Weighs DeepSeek's Rising Competition originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
29-01-2025
- Business
- Yahoo
Alibaba's AI Breakthrough Lifts Stock, Up 25% in Six Months
Goldman Sachs is staying bullish on Alibaba (NYSE:BABA) after the company unveiled its latest AI model, claiming it outperforms DeepSeek. Analyst Ronald Keung reiterated a Buy rating, predicting more than 20% upside. Warning! GuruFocus has detected 5 Warning Signs with BABA. Alibaba Cloud introduced Qwen2.5-VL, an open-source, multi-modal AI model that can analyze images, generate visuals, interact with devices, and process long videos. The company also launched Qwen2.5-1M, a large language model capable of handling 1 million input tokens at once. At the same time, DeepSeek released Janus-Pro, a competing AI model focused on multi-modal and visual generation. Alibaba's cloud unit claimed Qwen 2.5-Max surpasses OpenAI's GPT-4, DeepSeek-V3, and Meta's (META) Llama-3.1-405B. With AI competition heating up, investors are closely watching how Alibaba stacks up against global rivals. It's important to note that BABA is now up more than 25% in the past six months. This article first appeared on GuruFocus. Sign in to access your portfolio
