Company expects continued strong demand for AI infrastructure and related products
Alibaba plans sustained investment in AI capabilities and technology innovation
Company sees ongoing integration of AI into e-commerce and enterprise platforms
Overview
China e-commerce and cloud giant's Q1 revenue rose 9% yr/yr
Adjusted EPS for Q1 fell 42% yr/yr as tech investments weighed on profit
Company repurchased $162 mln in shares during the quarter
Result Drivers
Cloud and AI growth - Co said cloud segment revenue rose 45% yr/yr, with AI-related product revenue delivering triple-digit growth for the twelfth consecutive quarter
Technology investment - Increased spending on technology and AI infrastructure weighed on profit, per co
China e-commerce weakness - China e-commerce revenue fell 8% yr/yr, mainly due to weaker transaction activity and planned reduction in direct sales
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 31 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
Wall Street's median 12-month price target for Alibaba Group Holding Limited is HK$172.00, about 36.3% above its August 20 closing price of HK$126.20
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago
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