Report

BABA FY3Q25 Results: Capex to Meaningfully Increase Over the Next Three Years

What’s new: Alibaba’s reported FY3Q25 results that were above consensus and our expectations. CMR growth could continue to be supported by improvement in take rates, while AI-related cloud revs could remain resilient. The investments in cloud and AI infrastructure over the next three years could exceed what the company has spent over the past decade. We up our PT from US$100 to US$155 on improving outlook coupled with multiples rerating related to AI. Our updated PT of US$155 implies FY25E P/E of 16.9x. We maintain our BUY rating.

Analysts:
Jin Yoon
Underlying
Alibaba Group Holding Ltd. Sponsored ADR

Provider
New Street Research
New Street Research

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Analysts
Jin Yoon

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