Alibaba Group Holding Limited (89988) AI Stock Analysis

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HK:89988 Dividends

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Alibaba Group Holding Limited

(89988)

73Outperform

Alibaba demonstrates strong financial performance with solid revenue growth and profitability. The earnings call highlighted positive strategic directions, especially in AI and cloud, despite some concerns over free cash flow. Technical analysis shows bearish momentum, while valuation metrics suggest fair pricing. Overall, the stock has a positive outlook with some risk factors to monitor.

Alibaba Group Holding Limited (89988) vs. S&P 500 (SPY)

Market Cap

¥2.07T

Dividend Yield1.68%

Average Volume (3M)134.16K

Price to Earnings (P/E)16.7

Beta (1Y)1.41

Revenue Growth5.85%

EPS Growth30.65%

CountryHK

Employees194,320

SectorTechnology

Sector Strength57

IndustrySpecialty Retail

Share Statistics

EPS (TTM)6.39

Shares Outstanding19,103,195,000

10 Day Avg. Volume87,040

30 Day Avg. Volume134,155

Financial Highlights & Ratios

PEG Ratio0.55

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

Price to Cash Flow (P/CF)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Alibaba Group Holding Limited Business Overview & Revenue Model

Company DescriptionAlibaba Group Holding Limited is a Chinese multinational conglomerate specializing in e-commerce, retail, internet, and technology. Founded in 1999 by Jack Ma in Hangzhou, the company operates various businesses worldwide and is best known for its e-commerce platforms such as Taobao, Tmall, and Alibaba.com. Alibaba also offers cloud computing services, digital media and entertainment, and innovation initiatives, reflecting its diverse portfolio that caters to both consumers and businesses.

How the Company Makes MoneyAlibaba makes money primarily through its core commerce segment, which includes retail marketplaces like Taobao and Tmall, where it earns revenue from advertising services and transaction fees. The company also generates significant income from its international commerce operations, including platforms like AliExpress. Additionally, Alibaba's cloud computing division, Alibaba Cloud, contributes to its revenue by providing a range of services such as data storage, networking, and analytics to businesses globally. The digital media and entertainment segment, which includes platforms like Youku and Alibaba Pictures, adds to the revenue through subscription fees and advertising. Strategic partnerships, investments in technology, and a focus on the digital economy further underpin Alibaba's diverse revenue streams and growth.

Alibaba Group Holding Limited Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
950.25B	941.17B	868.69B	853.06B	717.29B	509.71B
	Gross Profit
341.05B	354.85B	306.62B	302.71B	285.35B	217.48B
	EBIT
115.34B	113.35B	104.20B	95.52B	91.37B	95.53B
	EBITDA
151.18B	154.48B	133.26B	110.19B	217.12B	137.76B
	Net Income Common Stockholders
69.68B	79.74B	72.51B	61.96B	150.31B	149.26B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
654.52B	571.03B	557.43B	490.35B	516.87B	375.41B
	Total Assets
1.82T	1.76T	1.75T	1.70T	1.69T	1.31T
	Total Debt
165.93B	205.61B	195.57B	176.60B	181.44B	147.29B
	Net Debt
-129.00B	-42.51B	-30.48B	-48.57B	-173.25B	-195.41B
	Total Liabilities
678.54B	652.23B	630.12B	613.36B	606.58B	433.33B
	Stockholders Equity
1.01T	986.54B	989.71B	948.52B	937.52B	755.45B
Cash Flow		Free Cash Flow
159.36B	150.51B	165.40B	89.44B	188.60B	135.22B
	Operating Cash Flow
171.45B	182.59B	199.75B	142.76B	231.79B	180.61B
	Investing Cash Flow
-74.57B	-26.07B	-137.10B	-193.76B	-244.39B	-112.42B
	Financing Cash Flow
-99.25B	-108.24B	-64.03B	-69.28B	30.28B	75.21B

Alibaba Group Holding Limited Technical Analysis

Technical Analysis Sentiment

Positive

Last Price108.20

Price Trends

50DMA

116.79

Negative

100DMA

98.29

Positive

200DMA

88.70

Positive

Market Momentum

MACD

-3.79

Negative

RSI

46.90

Neutral

STOCH

86.37

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:89988, the sentiment is Positive. The current price of 108.2 is below the 20-day moving average (MA) of 108.96, below the 50-day MA of 116.79, and above the 200-day MA of 88.70, indicating a neutral trend. The MACD of -3.79 indicates Negative momentum. The RSI at 46.90 is Neutral, neither overbought nor oversold. The STOCH value of 86.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:89988.

Alibaba Group Holding Limited Risk Analysis

Alibaba Group Holding Limited disclosed 70 risk factors in its most recent earnings report. Alibaba Group Holding Limited reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Alibaba Group Holding Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9988	81 Outperform	HK$2.21T	16.43	11.98%	0.86%	3.92%	27.80%
0700	77 Outperform	$4.34T	20.75	21.80%	0.71%	6.35%	68.85%
1810	76 Outperform	$1.20T	46.44	13.43%	―	32.62%	32.85%
9618	74 Outperform	HK$466.16B	10.06	17.58%	2.40%	4.83%	76.96%
89988	73 Outperform	¥2.07T	16.74	11.97%	1.68%	5.85%	30.65%
3690	70 Outperform	$780.07B	22.64	22.07%	―	19.90%	―
Sector *	59 Neutral	$10.74B	10.21	-6.69%	3.04%	7.44%	-10.92%

* Technology Sector Average

Performance Comparison

HK:89988

Alibaba Group Holding Limited

108.20

40.76

60.44%

HK:9988

Alibaba Group Holding Ltd.

115.60

42.83

58.86%

HK:9618

JD.com, Inc. Class A

123.80

8.79

7.64%

HK:3690

Meituan Dianping

127.60

16.20

14.54%

HK:1810

Xiaomi

47.70

30.28

173.82%

HK:0700

Tencent Holdings Limited

478.20

133.58

38.76%

Alibaba Group Holding Limited Earnings Call Summary

Earnings Call Date: Feb 20, 2025 | % Change Since: -7.12% | Next Earnings Date: May 14, 2025

Earnings Call Sentiment Positive

The earnings call reflected a generally positive outlook with strong growth in AI, cloud, and e-commerce segments. However, there were concerns about free cash flow reduction and losses in some business areas like AIDC and Cainiao. The company's strategic focus on AI and cloud investments indicates confidence in future growth potential.

Highlights

Strong Revenue Growth

Overall revenue grew 11% year-over-year with AI-related product revenue maintaining triple-digit year-over-year growth for the sixth consecutive quarter.

AI and Cloud Strategy Success

Alibaba's cloud business exhibited robust momentum with revenue growth accelerating to 13%. The launch of Qwen 2.5 Max AI model achieved industry-leading performance.

E-commerce Growth

Taobao and Tmall saw strong growth in new consumers and orders, with 88 VIP members reaching 49 million, growing in double digits.

International Business Growth

International e-commerce achieved strong growth, driven by cross-border businesses, and AIDC is expected to achieve its first quarter of profitability next fiscal year.

Financial Efficiency

Consolidated adjusted EBITDA increased by 4% to RMB 54.9 billion, and non-GAAP net income increased by 6%.

Lowlights

Free Cash Flow Decrease

Free cash flow decreased 31% to RMB 39 billion, primarily due to increased expenditure related to investments in cloud infrastructure.

Losses in Some Segments

AIDC had an adjusted EBITDA loss of RMB 5 billion compared to a loss of RMB 3.1 billion in the same quarter of last year.

Cainiao Revenue Decline

Revenue from Cainiao decreased by 1%, with adjusted EBITDA decreasing by 76% due to ongoing restructuring.

Company Guidance

In the recent Alibaba Group earnings call for the December quarter of 2024, management provided robust guidance across several key areas. Alibaba reported an 11% year-over-year revenue growth, excluding its consolidated subsidiaries, with AI-related product revenue sustaining triple-digit growth for the sixth consecutive quarter. The Cloud Intelligence Group notably contributed to this growth, with a 13% increase in cloud revenue, driven by strong demand for AI and public cloud products. In e-commerce, Taobao and Tmall achieved a 9% year-over-year growth in customer management revenue (CMR), while the 88 VIP membership grew to 49 million, maintaining double-digit growth. Alibaba's international e-commerce business also showed strong performance, with revenue from the AliExpress and Trendio platforms increasing by 36%. Financially, Alibaba's consolidated revenue reached RMB 280.2 billion, marking an 8% increase, and the company maintained a strong net cash position of RMB 378.5 billion. Looking ahead, Alibaba plans to invest heavily in AI and cloud infrastructure, with projected investments over the next three years exceeding the total from the past decade, aiming to harness substantial growth opportunities presented by advancements in AI technology.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.