Morgan Stanley, in its research report, predicted that BABA-W (09988.HK) +1.200 (+1.057%) Short selling $1.71B; Ratio 15.246% (BABA.US) ’s adjusted EBITA for 1QFY26 will decline by 16% YoY, due to an investment of approximately RMB10 billion in instant commerce business. The combined EBITA of TTG (Taobao and Tmall Group) and local services was expected to drop by 20%. With amplified investment, Morgan Stanley believed that Alibaba's 2QFY26 will be the peak investment period, with related investment possibly doubling to RMB20 billion, causing the EBITA downswing of the two business units to deepen to over 40%.Related NewsCiti: CN 6M25 Online Retail Sales Hike by 8.5%; E-commerce w/ Stronger Exposure in 'Trade-in' Categories Expected to Outperform Peers in 2Q GMVThe broker lowered Alibaba's FY2026 revenue forecast by 4.4% and adjusted EBITA forecast by 25.7%, and FY2027, by 4.1% and 17.5% respectively, while maintaining an Overweight rating and trimming the target price from USD180 to USD150. Morgan Stanley preferred Alibaba still in the e-commerce sector, followed by MEITUAN-W (03690.HK) -1.400 (-1.109%) Short selling $1.14B; Ratio 20.121% and then JD-SW (09618.HK) +0.400 (+0.320%) Short selling $119.95M; Ratio 10.683% (JD.US) . (HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-16 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)