Alibaba: Opportunity Seldom Knocks Twice
Portfolio Pulse from
Alibaba's stock surged to $120 following China's stimulus but has since returned to the $80s. In Q2 FY2025, Alibaba reported 5% revenue growth, driven by Taobao & Tmall and significant AI-related growth in Alibaba Cloud. Despite a 70% drop in free cash flow due to investments, Alibaba continues stock buybacks.
November 20, 2024 | 1:45 pm
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Alibaba's stock has returned to the $80s after a surge to $120. The company reported 5% revenue growth in Q2 FY2025, driven by Taobao & Tmall and AI-related growth in Alibaba Cloud. Despite a 70% drop in free cash flow due to investments, Alibaba's financial strength supports ongoing stock buybacks.
Alibaba's stock price is likely to remain stable in the short term. The 5% revenue growth and AI-related growth in Alibaba Cloud are positive, but the 70% drop in free cash flow due to investments may offset these gains. The ongoing stock buybacks indicate financial strength, supporting stability.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100