Alibaba’s Q2 Earnings Coming Up: Should You Buy or Hold the Stock?

From Nasdaq: 2024-11-13 11:02:00

Alibaba Group Holding Limited is set to report second-quarter fiscal 2025 results on Nov. 15. Analysts expect revenues to rise by 8.63% to $33.47 billion, with earnings per share increasing by 5.61% to $2.26. The stock has a mixed earnings history, with an average surprise of 3.71%.

Alibaba’s International Digital Commerce Group is expected to drive strong performance, supported by key platforms like AliExpress and Trendyol. The integration of AI technology has enhanced user experience, while B2B cross-border trade initiatives and logistics solutions show promising developments. However, competition in cloud services remains a challenge.

Despite shares underperforming peers like JD.com, Alibaba is trading at a discount with a forward P/S ratio of 1.49X. The company presents a compelling investment opportunity with growth catalysts across international commerce, cloud services, and logistics segments. Strategic partnerships and aggressive pricing initiatives position Alibaba for sustained growth.

Investors should consider establishing positions in Alibaba ahead of its earnings report, given the company’s growth potential. The strategic focus on international commerce, cloud services, and logistics, along with partnerships like the Douyin collaboration, make Alibaba an attractive long-term investment. Analysts predict a positive growth trajectory for the company.



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