0823 GMT - Alibaba's December quarter customer management revenue is forecast to have grown by 1% on year, slowing from the prior quarter, weighed by a high base, weak domestic consumption and tighter value-added tax collection, Nomura analysts Jialong Shi and Rachel Guo say in a note. They expect the revenue segment to remain weak until the June quarter unless tax authorities change course. China's e-commerce growth is estimated to have slowed to 1.3% on year in December, though Nomura expects a gradual recovery from the second half of calendar 2026 after merchants adapt to the new tax environment. Nomura maintains a buy rating on Alibaba's ADRs but cuts its target price to $193 from $215 after lowering consolidated Ebitda forecasts for FY 2026 and FY 2027. Alibaba's long-term outlook remains unchanged, with AliCloud still seen as underappreciated, Nomura says. The ADRs last closed at $150.96. (jason.chau@wsj.com)
(END) Dow Jones Newswires
January 12, 2026 03:23 ET (08:23 GMT)
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