From Nasdaq: 2024-11-21 11:05:00

Alibaba’s Q2 fiscal 2025 results show revenue of $33.7 billion, beating estimates, but earnings of $2.15 per ADS fell short due to increased investments. The domestic e-commerce segment sees growth, with Taobao and Tmall reaching new heights in monthly active consumers, driving monetization and engagement.

Alibaba Cloud’s revenue grows 7% quarter over quarter, driven by AI innovations. International expansion sees 29% revenue growth, with strategic investments in key markets. The stock has returned 11.9% year-to-date, but faces competition in e-commerce and cloud markets, trading at a discount compared to industry peers.

Alibaba’s forward P/E of 8.38X is significantly undervalued. The company’s share repurchase program and inclusion in the Stock Connect program indicate strong investor interest. Revenue estimates for fiscal 2025 stand at $140.46 billion, with earnings expected to grow 3%. Alibaba remains a top pick with a Zacks Rank #1 (Strong Buy).

Research Chief names Alibaba as a top pick for potential growth, targeting millennials and Gen Z. The company’s revenue potential and recent pullback make it an attractive investment opportunity. Despite risks, Alibaba’s growth strategy and leadership in technology position it well for future success. Download the Zacks report for more insights.



Read more at Nasdaq: Delving Beyond Alibaba’s Q2 Earnings: Should You Buy the Stock?