From Nasdaq: 2025-02-17 09:55:00

Alibaba Group Holding Limited (BABA) is set to report third-quarter fiscal 2025 results on Feb. 20. Analysts expect revenues to reach $38.19 billion, up 4.14% from the previous year. Earnings are estimated at $3.08 per share, a 15.36% increase.

Alibaba has a mixed earnings history, with a 4.87% negative surprise in the last quarter. Despite recent positive momentum in international markets, challenges in China and competition pose risks.

Alibaba’s International Digital Commerce Group saw 29% growth last quarter, driven by AliExpress and Trendyol. Domestic challenges persist, but the Cloud Intelligence Group shows promise. With a strong balance sheet and discount valuation, investors should monitor key segments for sustainable growth.

Alibaba stock has outperformed the industry, Retail-Wholesale sector, and S&P 500. Competition from Amazon (AMZN), JD.com (JD), and PDD Holdings (PDD) remains a concern. Despite a discount valuation, cautiousness is advised due to market uncertainties and free cash flow concerns.

Alibaba’s upcoming results warrant a cautious approach, given the mixed operational dynamics. While international growth and AI initiatives show promise, challenges in the domestic market and cloud segment competition require monitoring. Investors should await clearer signs of sustainable growth before considering new positions.



Read more at Nasdaq: Alibaba Q3 Earnings Preview: Should You Buy, Sell or Hold the Stock?