Back    Zoom +    Zoom -
<Research>M Stanley: Alibaba (BABA.US) 2FQ Cloud Acceleration Offsets ST Earnings Pressure
Recommend
20
Positive
35
Negative
19
Morgan Stanley published a research report, expecting Alibaba's (BABA.US) cloud revenue to accelerate YoY growth to 32% in 2QFY26, with the cloud's EBITA margin relatively stable at 8-9%.

Morgan Stanley also predicted Alibaba's discount rate to continue to improve, propelled by increased adoption of its AI tool "Quanzhantui" and higher CMR from its QC (quick commerce) initiative, while expecting CMR growth to remain at 10% YoY. Furthermore, due to QC and other losses, it estimated consolidated adjusted EBITA to sink 85% YoY to RMB6 billion.

Related NewsBOCOMI Expects HK 'Slow Bull' Mkt Trend to Persist; CN Investors Show Strong Demand for AI/ Other Quality Targets
The broker lowered its adjusted EBITA forecasts for Alibaba for FY2026-27 by 10% and 5%, respectively, but reiterated its Overweight rating and maintained its target price of US$200.
AAStocks Financial News