--- title: "Morgan Stanley: Alibaba-W's earnings last quarter were disappointing, and a negative market reaction is expected" type: "News" locale: "en" url: "https://longbridge.com/en/news/279908892.md" description: "JP Morgan released a research report stating that Alibaba-W's performance in the third fiscal quarter of 2025 was poor, with total revenue increasing by 2% year-on-year to RMB 284.8 billion, below expectations; adjusted net profit plummeted by 67% year-on-year to RMB 16.7 billion, far below market expectations. Although revenue from external customers in the cloud business accelerated growth to 35%, and AI product revenue maintained triple-digit growth, overall profitability was disappointing, and a negative market reaction is expected. The rating is maintained at \"Overweight,\" with a target price of HKD 210" datetime: "2026-03-20T08:25:06.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279908892.md) - [en](https://longbridge.com/en/news/279908892.md) - [zh-HK](https://longbridge.com/zh-HK/news/279908892.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/279908892.md) | [繁體中文](https://longbridge.com/zh-HK/news/279908892.md) # Morgan Stanley: Alibaba-W's earnings last quarter were disappointing, and a negative market reaction is expected According to the Zhitong Finance APP, JP Morgan released a research report stating that Alibaba-W (09988) reported a 2% year-on-year increase in total revenue for the third quarter of the 2025 fiscal year, reaching RMB 284.8 billion, which is 2% lower than the bank's and market expectations, but generally acceptable; however, the adjusted net profit plummeted 67% year-on-year to RMB 16.7 billion, which is 40% and 44% lower than the bank's and market expectations, respectively, indicating disappointing performance. The rating for Alibaba is maintained at "Overweight," with a target price of HKD 210. The report indicates that customer management revenue (CMR) and cloud business, among other major revenue items, generally met investor expectations, reflecting that there was no shake in the core narrative of the e-commerce monetization cycle slowing down and stable demand for AI cloud this quarter. This factor was offset by disappointing earnings across widely varied business segments, reflecting cost pressures higher than expected and a weakening short-term profit trajectory. Revenue growth from external customers in Alibaba's cloud business accelerated from 29% in the previous quarter to 35%, with AI-related product revenue maintaining triple-digit growth. Capital expenditures remained high, recording RMB 29 billion (compared to RMB 31.5 billion in the previous quarter). Revenue for the Chinese e-commerce group grew 6% year-on-year, which is 2% lower than the bank's expectations, mainly driven by a 56% year-on-year increase in instant commerce revenue; adjusted EBITA fell 43% year-on-year to RMB 34.6 billion, in line with the bank's expectations. International digital commerce revenue growth further slowed to 4%, which is 3% lower than the bank's expectations, with adjusted EBITA recording a loss of RMB 2 billion again. The "All Other" business saw adjusted EBITA losses widen to RMB 9.8 billion, worse than the bank's expected loss of RMB 8.5 billion ### Related Stocks - [BABA-W (09988.HK)](https://longbridge.com/en/quote/09988.HK.md) - [ALI HEALTH (00241.HK)](https://longbridge.com/en/quote/00241.HK.md) - [KraneShares 2x Long BABA Daily ETF (KBAB.US)](https://longbridge.com/en/quote/KBAB.US.md) - [YieldMax BABA Option Income Strategy ETF (BABO.US)](https://longbridge.com/en/quote/BABO.US.md) - [GraniteShares 2x Long BABA Daily ETF (BABX.US)](https://longbridge.com/en/quote/BABX.US.md) ## Related News & Research - [Alibaba's AI strategy shift comes into focus with big bets on agents](https://longbridge.com/en/news/279550043.md) - [MetaComp secures $44.45m pre-A funding with Alibaba-Spark Venture support](https://longbridge.com/en/news/279169725.md) - [Alibaba Reportedly Launches New AI Platform That Oversees Multiple Agents](https://longbridge.com/en/news/279412426.md) - [Alibaba has made 470,000 AI chips, admits they’re inferior and may always be](https://longbridge.com/en/news/279869327.md) - [Alibaba Unveils Token Hub To Consolidate AI Efforts](https://longbridge.com/en/news/279272192.md)