Alibaba: Enormous Price For A Tough Turnaround

Impact · against what's priced in

Alibaba faces significant downward pressure due to a massive collapse in operating income and a valuation that is disconnected from its current growth profile and domestic peers. JD.com and PDD Holdings see a marginal positive relative value signal as Alibaba's premium becomes harder to justify.

BABA−0.70

No priced-in read yet

In context

A 74% drop in operating income and margin compression from AI/cloud spending suggest a severe erosion of profitability that outweighs the 36% growth in Cloud Intelligence.

Read from the article alone

• ai
• valuation
• BABA
• JD
• PDD
• alibaba
• china
• cloud
• competition
• e commerce
• margins