Seeking Alpha
15 Oct 2026, 10:46 UTC · 1h ago
Alibaba: Enough Fuel To Power The Trillion-RMB Cloud Machine
Impact · against what's priced in
The article provides no new catalyst for BABA as its cloud growth and capex burn are already factored into the valuation. The market continues to ignore the cloud scale-up, viewing it as a capital sink rather than a profit engine, and these targets do not alter that structural skepticism.
- BABA−0.05
Already priced in
- The price assumes
The 75% surge in capital expenditures, which together destroy current free cash flow
The estimate of 200-300bn RMB annual capex for AI and cloud reinforces the current cash burn narrative the market has already priced in.
What BABA's price assumes · Sep 11
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