---
title: "BUZZ-Street View: Alibaba's re-investment strategies to drive growth"
description: "Alibaba's fourth-quarter profit dropped 86% due to valuation changes from equity investments. Analysts expect the company's strategic reinvestment and improving domestic e-commerce market share to dri"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/204154968.md"
published_at: "2024-05-15T11:23:13.000Z"
---

# BUZZ-Street View: Alibaba's re-investment strategies to drive growth

> Alibaba's fourth-quarter profit dropped 86% due to valuation changes from equity investments. Analysts expect the company's strategic reinvestment and improving domestic e-commerce market share to drive growth. Shareholder return policies are also predicted to provide downside protection.

\*\* China’s Alibaba Group Holding (9988.HK) on Tuesday reported an 86% plunge in fourth-quarter profit, primarily due to valuation changes from equity investments

\*\* Median PT of 47 brokerages covering its U.S.-listed stock (BABA.N) is $107 - LSEG data

### POLICIES TO LIKELY PROVIDE DOWNSIDE PROTECTION

\*\* Citigroup (“buy”, PT: $122) sees initial positive progress, with speed-up of growth led by co’s strategic reinvestment and valuation

\*\* Benchmark (“buy”, PT: $118) says Alibaba is “incrementally more comfortable” for potential turnaround playing out in H2 of FY 2025 along with stabilizing macro backdrop

\*\* J.P.Morgan (“overweight”, PT: $100) says improving domestic e-commerce market share should lead to better monetization eventually

\*\* Goldman Sachs (“buy”) expects significant shareholder return policies to likely provide downside protection

\*\* Zephirin Group (“sell”) believes BABA is showing sense of urgency with upcoming introduction of new monetization tools and AI-driven strategy to grow revenue in FY 2025

### Related Stocks

- [09988.HK - BABA-W](https://longbridge.com/en/quote/09988.HK.md)
- [BABA.US - Alibaba](https://longbridge.com/en/quote/BABA.US.md)
- [89988.HK - BABA-WR](https://longbridge.com/en/quote/89988.HK.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
