From Nasdaq: 2025-05-18 05:14:00

Alibaba (NYSE: BABA) stock had a strong start in 2025 but dipped after disappointing Q4 earnings. Despite this, the stock is up 45% for the year. The company’s e-commerce business is showing progress, with 9% revenue growth. Its cloud-computing segment saw revenue rise by 18%. Overall revenue increased by 7% to $32.6 billion.

Alibaba’s e-commerce business, including Tmall and Taobao, saw growth in revenue and EBITA. The company is investing in “instant commerce” for fast deliveries and extending partnerships. Its AI products are gaining traction, and cloud-computing revenue is expected to grow. Despite some unprofitable segments, Alibaba generated $10.2 billion in free cash flow for the year.

Alibaba’s turnaround efforts are evident in its financial results. The company’s cloud-computing business is growing with strong operating leverage. With a forward P/E ratio of around 12, the stock remains a good opportunity to buy on the dip. The company’s continued progress in e-commerce and AI technology positions it well for future growth.

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Read more at Nasdaq: Alibaba Shares Fall Despite Accelerating AI Growth. Is It Time to Buy the Dip?