<Research>CICC Forecasts BABA-W's E-commerce Rev. & Profit to Subside This Yr, Cloud Computing to Grow Rapidly

News Sharing

For sharing news, please enter the email address of you and the receiver, then press SEND button.*Mandatory Fields

Receiver*

Enter email addresses, separated by semicolon (;). E.g. a@a.com;b@b.com

Your email address*

Content Sharing

<Research>CICC Forecasts BABA-W's E-commerce Rev. & Profit to Subside This Yr, Cloud Computing to Grow Rapidly

CICC has published a research report predicting that BABA-W (09988.HK) will log a 4.6% YoY increase in revenue to RMB293.1 billion in 3QFY26 (4Q25), while its adjusted EBITA will d...

Reset

Send

The window will close in 5 seconds

<Research>CICC Forecasts BABA-W's E-commerce Rev. & Profit to Subside This Yr, Cloud Computing to Grow Rapidly

Recommend

Positive

Negative

SHORT SELL

STOCK INFO

CICC has published a research report predicting that BABA-W (09988.HK) -4.400 (-2.604%) Short selling $3.92B; Ratio 17.785% will log a 4.6% YoY increase in revenue to RMB293.1 billion in 3QFY26 (4Q25), while its adjusted EBITA will decline by 50% YoY to RMB27.7 billion, with profits falling below expectations due to poor e-commerce performance and expanded losses in other businesses.

Specifically, CICC estimates BABA-W's China e-commerce profit to slip by 42% YoY to RMB34.8 billion in 3QFY26. Because of larger investment during peak seasons, the company's core e-commerce, after excluding Taobao Instant Commerce, will record a negative YoY growth. Overall, its e-commerce revenue and profit are expected to cave under pressure in 2026.

Related NewsCiti Anticipates Strong Demand for AI Cloud Services, Selects TENCENT/ Alibaba/ Trip.com/ NetEase/ CENTURY HUATONG as Top Picks for Internet Sector
In contrast, CICC anticipates BABA-W's cloud computing revenue to surge by 36% YoY during the same period. Its external revenue is also projected to increase by 32% YoY, compared to the previous quarter's 29%. The EBITA profit margin for cloud computing is likely to reach 9%.

CICC has set its target price for BABA-W at HKD197 and, upbeat about the growth potential of its cloud computing, kept the Outperform rating unchanged.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-01-15 16:25.)

AAStocks Financial News

Copyright(C) AASTOCKS.com Limited 2000. All rights reserved.
Disclaimer: AASTOCKS.com Ltd, HKEx Information Services Limited, its holding companies and/or any subsidiaries of such holding companies endeavour to ensure the accuracy and reliability of the Information provided but do not guarantee its accuracy or reliability and accept no liability (whether in tort or contract or otherwise) for any loss or damage arising from any inaccuracies or omissions.