$BABA-W(09988.HK)$Alibaba(BABA.US)

I'm betting long on Alibaba's earnings report!!

The market's biggest concern this time is that the cloud business and computing power investments are too large, which will eat into profits in the short term, making the financial statements look less attractive. However, this is not a sign of operational issues within the company, but rather a normal, proactive investment for the future. Alibaba Cloud's growth rate has shown a clear rebound over the past few quarters, with a healthier customer structure and an increasing proportion of external revenue, indicating it's back on a growth trajectory. Although the e-commerce sector faces fierce competition, its core business remains solid, with impressive growth in instant retail, stable 88VIP users, and the platform's merchant and brand advantages still intact. There hasn't been the significant decline that many feared. Additionally, the company's continued large-scale share repurchases effectively put a floor under the stock price, leaving little room for a major drop. The market has already priced in the negative impact of the short-term profit decline, and the stock price has adjusted for a while. As long as the cloud business growth meets targets and the e-commerce business remains stable in the earnings report, it would mean the negative news is fully digested. Capital can easily re-enter the market, driven by expectations of a cloud business recovery and clear long-term logic, pushing the stock price to rebound. Overall, although the data in this earnings report may not be eye-catching, the signal of an inflection point is more important. I'm leaning bullish.