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<Research>G Sachs: BABA-W 4QFY25 Results Largely Solid, Hails Positives at Company/ Industry Lv.
Recommend 20 Positive 38 Negative 13 |
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Goldman Sachs published a report, saying that BABA-W (09988.HK)’s 4QFY25 results, for the quarter ending March 31, 2025, were broadly solid. Customer Management Revenue (CMR) lifted 12% YoY, and Taobao and Tmall Group (TTG)’s adjusted EBITA rose 8% YoY, both topping Goldman Sachs’ and market’s expectations. Cloud revenue elevated 18% YoY, and EPS grew 23% YoY, aligning with Goldman Sachs’ forecasts. The broker spotted a negative market reaction to the results, attributing it to cloud growth/ margin (miss)/ capex (lower QoQ), and Alibaba’s stock outperforming the Chinese ADR EFT, KWEB (KWEB.US), over the past month. Goldman Sachs highlighted several positive factors for Alibaba at both the company and industry levels: (1) Investments into core businesses (e-commerce + cloud) will reignite growth. (2) Alibaba’s leadership in GenAI computing power positions it for multi-year growth in AI and cloud services. (3) Potential China’s policies, such as further consumption stimulus, and ongoing AI-driven advertising technology upgrades are expected to stabilize CMR and TTG profits. (4) Strong shareholder returns (a three-year stock buyback plan and annual dividends). AAStocks Financial News |
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