From Morningstar: 2024-05-17 07:02:00

Alibaba’s stock fell after earnings, but Morningstar raised the fair value estimate to $96.00 based on sales forecasts for the next 10 years. The company’s March-quarter revenue beat estimates but adjusted EBITA missed by 2%. Despite a 6% share price correction, the outlook on GMV growth, take rate, and cloud revenue is encouraging. Adjusted EBITA for Taobao and Tmall fell 1% due to prioritizing market share gain over profitability. Morningstar raised their fair value estimate by 2% to $96 per share on higher GMV assumptions and customer management revenue for the next 10 years.



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