"Barclays believes Alibaba's stepped-up investments are necessary in its race to reach and maintain dominance in AI. The firm sees the spending acceleration as a strategic necessity to secure and extend Alibaba's position in the AI race."
"Alibaba's Cloud Intelligence Group revenue grew 36% year over year in the most recent quarter, with AI-related product revenue delivering triple-digit growth for the tenth consecutive quarter. That's consistent acceleration, not a one-quarter spike."
"CEO Eddie Wu reinforced the long-term ambition on the earnings call, stating, 'Over the next 5 years, our goal is to surpass USD 100 billion in combined cloud and AI external revenue, including MaaS.'"
Barclays has reduced its price target for Alibaba to $186 from $190, maintaining an Overweight rating. This adjustment reflects a disciplined reassessment rather than a loss of confidence. The firm believes Alibaba's increased investments are essential for maintaining its competitive edge in AI. Alibaba's Cloud Intelligence Group revenue grew 36% year over year, with AI-related products showing consistent triple-digit growth. CEO Eddie Wu aims for over $100 billion in combined cloud and AI revenue in the next five years, a target Barclays considers credible.
Read at 24/7 Wall St.
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