Alibaba’s Outlook Brightens Amid Attractive Valuation Metrics Alibaba Group’s future is increasingly promising, supported by strong fundamentals and a compelling valuation relative to risk-free benchmarks. Using a forward earnings-based approach, the company’s fair value is estimated at $318 per share.
Alibaba delivered solid FY2025 results with revenue growing 6% to RMB 996.3 billion ($137.3B). Key highlights include core e-commerce (Taobao/Tmall) customer management revenue growing 12%, Cloud Intelligence revenue accelerating to 18% growth, and AI-related products achieving triple-digit growth for the seventh consecutive quarter.
Key Takeaways Investment in AI, cloud, and quick commerce aims to drive long-term revenue and margin growth despite near-term profit pressure from elevated spending. Enhanced integration and partnerships are expanding Alibaba's enterprise footprint, boosting user engagement, and strengthening its competitive position in digital services.
Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. It operates digital retail platforms under the Taobao and Tmall names; wholesale marketplaces through 1688.com and Alibaba.com; global e-commerce platform under the AliExpress name; e-commerce platforms under the Lazada, Trendyol, and Daraz names; and consumer-to-consumer community and marketplace under the Tmall Global, Tmall Supermarket, and Xianyu names. The company also operates Cainiao, an e-commerce logistics solution; Ele.me, an on-demand delivery and local services platform; and Amap, a provider of mobile digital map, navigation, and real-time traffic information; Youku, an online video platform; and Damai Entertainment that provides content production, promotion and distribution, performance and event ticketing management, IP-related licensing and operations, cinema ticketing management, and internet data services for the entertainment industry. In addition, it provides elastic computing, storage, network, security, database, big data, cloud native, and Alibaba cloud model studio services; and hardware, software license and installation, and application development and maintenance services, as well as sells membership packages and subscriptions. Further, the company offers Freshippo, a retail platform for groceries and goods; Alibaba Health for medical and healthcare solutions; mobile games under the Lingxi Games name; UC Browser, an information service platform; Quark, an information services platform for young users; Fliggy, an online travel platform; and DingTalk, a collaboration workplace and enterprise management platform. Alibaba Group Holding Limited was incorporated in 1999 and is based in Causeway Bay, Hong Kong.
