Goldman Sachs published a report, saying that BABA-W (09988.HK)  -5.500 (-4.267%)    Short selling $1.36B; Ratio 7.556%   ’s 4QFY25 results, for the quarter ending March 31, 2025, were broadly solid. Customer Management Revenue (CMR) lifted 12% YoY, and Taobao and Tmall Group (TTG)’s adjusted EBITA rose 8% YoY, both topping Goldman Sachs’ and market’s expectations. Cloud revenue elevated 18% YoY, and EPS grew 23% YoY, aligning with Goldman Sachs’ forecasts.

The broker spotted a negative market reaction to the results, attributing it to cloud growth/ margin (miss)/ capex (lower QoQ), and Alibaba’s stock outperforming the Chinese ADR EFT, KWEB (KWEB.US)      , over the past month.

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Goldman Sachs highlighted several positive factors for Alibaba at both the company and industry levels:
(1) Investments into core businesses (e-commerce + cloud) will reignite growth.
(2) Alibaba’s leadership in GenAI computing power positions it for multi-year growth in AI and cloud services.
(3) Potential China’s policies, such as further consumption stimulus, and ongoing AI-driven advertising technology upgrades are expected to stabilize CMR and TTG profits.
(4) Strong shareholder returns (a three-year stock buyback plan and annual dividends).
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