Alibaba Group Holding Limited (NYSE:BABA) received a Buy rating from Benchmark with a $195.00 price target following its second-quarter fiscal 2026 results, showing strong growth in core e-commerce and cloud services. Revenue grew 5% yoy to RMB 248B, beating estimates by approximately 3B. Adjusted EBITDA missed due to continued investment in quick commerce.

The company’s E-commerce group saw 16% yoy growth, while Cloud services accelerated to 34% yoy, both surpassing expectations. Revenue totaled RMB 248B, up 5% y/y, beating consensus by RMB ~3B. Adjusted EBITDA was RMB 17B, missing consensus expectation of RMB 19B due to quick commerce investment. International Digital Commerce was up 10% y/y.

Alibaba Group Holding Limited (NYSE:BABA) is a prominent internet giant offering e-commerce services in China and globally. While BABA shows potential as an investment, some AI stocks may offer greater upside potential with less downside risk. For insights on a potentially undervalued AI stock benefiting from current trends, check out the free report.

Overall, Alibaba’s performance in the second quarter of fiscal 2026 demonstrated solid growth and revenue generation, outperforming expectations in key segments. With a focus on e-commerce and cloud services, the company continues to navigate market challenges and invest in future growth opportunities.

Read more at Yahoo Finance: Alibaba’s (BABA) Latest Results Highlight Powerful Cloud Momentum and Solid E-Commerce Gains