Alibaba's Overhaul Costs And Challenges To Weigh On Stock Near-Term Before Adding Value, Analysts Expect
Portfolio Pulse from Anusuya Lahiri
Analysts re-rated Alibaba (NYSE:BABA) after the company shared its IPO plans for the Cloud division and posted upbeat Q4 results. However, the competition in Commerce & Cloud and the major reorganization are expected to weigh on the stock in the short term before driving value creation in the mid and long term.
May 19, 2023 | 5:51 pm
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Alibaba's IPO plans for the Cloud division and upbeat Q4 results may be overshadowed by competition and reorganization, potentially weighing on the stock in the short term.
The article mentions that Alibaba's IPO plans for the Cloud division and positive Q4 results have led to a re-rating by analysts. However, the competition in Commerce & Cloud and the major reorganization are expected to keep investments high and margins in check in the short term. This could potentially weigh on the stock before driving value creation in the mid and long term.
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