Daiwa: Alibaba's Long-Term Outlook Strengthened by AI Commercialization Prospects

Deep News03-20 12:31

Daiwa analysts stated in a research report that, despite Alibaba Group's weaker-than-expected profitability in the third fiscal quarter, its long-term prospects remain positive. The analysts noted that Daiwa holds "a more cautious view on profitability than the market consensus but maintains a positive outlook on the medium-term AI commercialization prospects for Alibaba Cloud." They highlighted Alibaba's increasing focus on commercializing its AI operations. The analysts indicated that the new AI business unit, Token Hub, is likely to become a "core commercial engine for scalable token consumption." Developers use tokens to measure and pay for AI workloads. Although losses in the food delivery segment remained significant in the December quarter, the analysts anticipate a narrowing of these losses in the upcoming quarter. The analysts reaffirmed a Buy rating on the stock but reduced their target price from HK$191.00 to HK$184.00.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment