Alibaba's Cloud Intelligence: Growth Driver and Undervalued Asset

$Alibaba(BABA)$ $BABA-W(09988)$ 's Cloud Intelligence business is the driving force of its growth. After going through several years of regulatory scrutiny, the company now has a clear path towards expanding in this market expected to triple to $293B by 2027. It's why they're investing heavily today.

EBITDA margins hit an all-time-high of 9% in 2QFY25, up from 5.1% a year ago, and up from 2.1% two years ago. These margins are almost similar to $Amazon.com(AMZN)$ 's AWS, which is now being valued at $2.5 to $3.0 trillion.

Alibaba Cloud isn't generating anywhere near the revenue of AWS. But not too far either - about 1/6th AWS 2023 revenues on a TTM basis. Kind of gives you an idea just how undervalued and underappreciated this side of Alibaba's business is today.

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After going through several years of regulatory scrutiny, the company now has a clear path towards expanding in this market expected to triple to $293B by 2027. It's why they're investing heavily today.EBITDA margins hit an all-time-high of 9% in 2QFY25, up from 5.1% a year ago, and up from 2.1% two years ago. These margins are almost similar to <a data-mention-id=\"AMZN\" class=\"teditor-mention\" data-mention-name=\"Amazon.com\" href=\"https://ttm.financial/S/AMZN\">$Amazon.com(AMZN)$</a> 's AWS, which is now being valued at $2.5 to $3.0 trillion. Alibaba Cloud isn't generating anywhere near the revenue of AWS. But not too far either - about 1/6th AWS 2023 revenues on a TTM basis. Kind of gives you an idea just how undervalued and underappreciated this side of Alibaba's business is today.<img alt=\"Image\" title=\"Image\" src=\"https://community-static.tradeup.com/news/cfb7dacb32fc1648e913c098519a3ec4\" tg-width=\"2841\" tg-height=\"1691\">Image</body></html>","htmlText":"<html><head></head><body> <a data-mention-id=\"BABA\" class=\"teditor-mention\" data-mention-name=\"Alibaba\" href=\"https://ttm.financial/S/BABA\">$Alibaba(BABA)$</a> <a data-mention-id=\"09988\" class=\"teditor-mention\" data-mention-name=\"BABA-W\" href=\"https://ttm.financial/S/09988\">$BABA-W(09988)$</a> 's Cloud Intelligence business is the driving force of its growth. After going through several years of regulatory scrutiny, the company now has a clear path towards expanding in this market expected to triple to $293B by 2027. It's why they're investing heavily today.EBITDA margins hit an all-time-high of 9% in 2QFY25, up from 5.1% a year ago, and up from 2.1% two years ago. These margins are almost similar to <a data-mention-id=\"AMZN\" class=\"teditor-mention\" data-mention-name=\"Amazon.com\" href=\"https://ttm.financial/S/AMZN\">$Amazon.com(AMZN)$</a> 's AWS, which is now being valued at $2.5 to $3.0 trillion. Alibaba Cloud isn't generating anywhere near the revenue of AWS. But not too far either - about 1/6th AWS 2023 revenues on a TTM basis. Kind of gives you an idea just how undervalued and underappreciated this side of Alibaba's business is today.<img alt=\"Image\" title=\"Image\" src=\"https://community-static.tradeup.com/news/cfb7dacb32fc1648e913c098519a3ec4\" tg-width=\"2841\" tg-height=\"1691\">Image</body></html>","text":"$Alibaba(BABA)$ $BABA-W(09988)$ 's Cloud Intelligence business is the driving force of its growth. After going through several years of regulatory scrutiny, the company now has a clear path towards expanding in this market expected to triple to $293B by 2027. It's why they're investing heavily today. EBITDA margins hit an all-time-high of 9% in 2QFY25, up from 5.1% a year ago, and up from 2.1% two years ago. These margins are almost similar to $Amazon.com(AMZN)$ 's AWS, which is now being valued at $2.5 to $3.0 trillion. Alibaba Cloud isn't generating anywhere near the revenue of AWS. But not too far either - about 1/6th AWS 2023 revenues on a TTM basis. Kind of gives you an idea just how undervalued and underappreciated this side of Alibaba's business is today. 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