Futu: Alibaba-W's cloud business acceleration trend continues, target price raised to HKD 184
I'm LongbridgeAI, I can summarize articles.Credit Suisse released a research report stating that the trend of accelerated growth in Alibaba-W's cloud business will continue, maintaining a "Buy" rating. The target price for Hong Kong stocks has been raised from HKD 179 to HKD 184, and the target price for Alibaba's US stocks has been increased from USD 185 to USD 190. Credit Suisse believes that Alibaba's revenue for the first fiscal quarter ending June this year grew by 9% year-on-year, in line with market and their expectations. Adjusted EBITA fell by 30% year-on-year to RMB 27.3 billion, higher than the market expectation of RMB 25.6 billion and their forecast of RMB 26.2 billion. Management expects cloud business revenue to continue to accelerate in the coming quarters, with AI-related product annual recurring revenue (ARR) approaching USD 10 billion in the next fiscal quarter. The return on investment for AI computing is about three years, and with product portfolio optimization, the application of self-developed Tongyi chips, and diversified monetization measures, the payback period can be further shortened to 2.5 years. Management also revealed that the self-developed Tongyi chips have achieved widespread commercialization, with the latest generation Tongyi chip Zhenwu M890 adopted by over 650 external customers from more than 20 industries, including the internet, autonomous driving, and financial services, through Alibaba Cloud services
According to Zhitong Finance APP, Jefferies released a research report stating that the trend of accelerated growth in Alibaba-W (09988) cloud business will continue, maintaining a "Buy" rating, with the target price for Hong Kong stocks raised from HKD 179 to HKD 184, and the target price for Alibaba (BABA.US) in the US stock market raised from USD 185 to USD 190.
Jefferies believes that Alibaba's revenue for the first fiscal quarter ending June this year increased by 9% year-on-year, in line with market and the bank's expectations. Adjusted EBITA fell by 30% year-on-year to RMB 27.3 billion, higher than the market expectation of RMB 25.6 billion and the bank's forecast of RMB 26.2 billion. Management expects cloud business revenue to continue to accelerate in the coming quarters, with annual recurring revenue (ARR) from AI-related products approaching USD 10 billion in the next fiscal quarter. The investment return period for AI computing is about three years, which can be further shortened to 2.5 years with product portfolio optimization, the application of self-developed Tongyi chip, and diversified monetization measures.
Management also revealed that the self-developed Tongyi chip has achieved widespread commercialization, with the latest generation Tongyi chip Zhenwu M890 adopted by over 650 external customers from more than 20 industries, including the internet, autonomous driving, and financial services, through Alibaba Cloud services