Max87
08-20

$Alibaba(BABA)$  Just finish listening to the ER half an hour ago. These are my initial thoughts with a glance through the numbers:

1) it's suprisingly a positive release imo. For the first time, they're not behind peers in the industry. E-commerce top line is more or less in line or slightly outperforming & profitability somewhat maintained.

2) Cloud PaaS business is now profitable finally contributing to group margins after multi-decade subsidies. Only drawback is AI application expenses actually outpaced the margins from PaaS business. But AI application is actually growing extremely fast triple digit & crucial to the PaaS long term business. That's the whole model. I consider this development positive. In comparison, Tencent seems more vulnerable in the long term although extremely financially discipline.

I'll post once I've gained more insights. Cheers

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Comments

  • Ancient One
    08-20
    Ancient One
    MSFT and AMZN went through the same path 6 months ago, now people regret not buying when MSFT was $350
  • Gloria112
    08-21 18:12
    Gloria112
    Cloud PaaS finally turning profitable is the big shift here. I care more about that self-funding model than near term AI spend
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