---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/dolphin/post/42500334.md"
description: "Since the open, Alibaba rallied sharply. Beyond a broad rebound in HK stocks, the main catalyst was Alibaba's freshly released Q2 results preview, which included several positives; details below:1) E-com remains the laggard, with CMR expected to decline by a high-single-digit % YoY; excluding changes in revenue recognition scope, it should be flat to slightly up YoY. Profit is expected to dip slightly YoY.However, this has been well anticipated, and the sustained share-price weakness has already reflected, if not over-discounted, this setup.2) Cloud was the standout, with next-quarter revenue growth expected to accelerate to Approx. 45%, ahead of the market's just-over-40% pace. While the Qwen model is not yet best-in-class, cloud growth remains strong.Benefiting from a higher MaaS mix and in-house chips, cloud OPM is also expected to improve notably to above 10%, broadly mirroring global cloud peers.3) A secondary positive: next-quarter food-delivery losses are expected to narrow materially to around RMB 10bn. This is consistent with Meituan's Q2 UE trending sharply better, potentially turning positive.Overall, e-com is clearly weakening, while cloud and AI performance continues to improve, even if the foundation model is not an obvious leader. Delivery-war participants are collectively cutting losses. These trends are broadly in line with Dolphin Research and market expectations and do not signal a thesis change.The key point: over the past month-plus, Alibaba's share price fell from around HK$130 to below HK$90, an overshoot in a short window that merits some valuation repair. Looking ahead, medium-to-long-term upside still depends on a modest domestic cyclical turn in H2 and on whether Alibaba's foundation model and chip capabilities can regain industry leadership.$Alibaba(BABA.US) $BABA-W(09988.HK)"
datetime: "2026-07-08T05:47:24.000Z"
locales:
  - [en](https://longbridge.com/en/dolphin/post/42500334.md)
  - [zh-CN](https://longbridge.com/zh-CN/dolphin/post/42500334.md)
  - [zh-HK](https://longbridge.com/zh-HK/dolphin/post/42500334.md)
author: "[Dolphin Research](https://longbridge.com/en/dolphin.md)"
generator: "portal-rs"
---

# Since the open, Alibaba rallied sharply. Beyond a …


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## Comments (1)

- **Fattycat · 2026-07-08T05:55:55.000Z**: Thanks Dolphin for the updates. Let’s go Alibaba 🚀.


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