🌟🌟🌟I will be watching $BABA-W(09988.HK)as it reports its latest earnings on Thursday August 20 2026. While Alibaba's top line cloud and ecommerce volumes are successfully expanding, massive structural investments into AI infrastructure are eating away at its immediate bottom line.
The consensus revenue estimate is RMB 268.5 Billion or USD 38.63 Billion, representing an uncharacteristically strong 11.7% increase YoY.
Consensus EPS is USD 1.94, which marks a decline of 5.8% compared to same quarter last year.
If CEO Eddie Wu can prove that cloud monetisation is finally expanding profit margins, the stock has a clear path to unlock its deeply compressed value.
I am optimistic on Alibaba because Alibaba Cloud is the undisputed digital infrastructure king of China. While massive Capex have temporarily squeezed margins, that infrastructure is the vital oxygen for China's unfolding generative AI boom. I believe that this quarter will finally prove that enterprise AI demand is translating into high margin, sticky recurring revenue.
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