Daiwa: Alibaba Group's long-term outlook remains positive due to AI commercialization prospects

MaticHoleFiller · 2026-03-24T16:48:54+00:00

Daiwa analysts point out that Alibaba's third quarter profitability fell short of expectations, but long-term prospects remain favorable, particularly in the commercialization of AI business. Despite high losses in food delivery, it is expected to narrow in the next quarter. The firm maintains a buy rating with a target price adjusted down to HK$184.00.

MaticHoleFiller

2026-03-24 16:48:54

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Mizuho analysts stated in a research report that although Alibaba Group’s third-quarter profitability was weaker than expected, its long-term outlook remains positive. The analysts said that Mizuho is “more cautious about profitability than the market average but holds an optimistic view on Alibaba Cloud’s mid-term AI commercialization prospects,” and pointed out that Alibaba is increasingly focusing on monetizing its AI business. They indicated that the new AI business division, Token Hub, is likely to become the “core commercial engine for scalable token consumption.” Developers use tokens to measure and pay for AI work. These analysts mentioned that although the food delivery business still incurred significant losses in December, they expect losses to narrow in the next quarter. They maintained a buy rating but lowered the target price from HKD 191.00 to HKD 184.00.

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