BABA

Alibaba Group Holding Limited

118.73
USD
0.94%
118.73
USD
0.94%
73.28 229.64
52 weeks
52 weeks

Mkt Cap 322.73B

Shares Out 2.72B

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Alibaba might be 'unlikely' to report Q1 earnings surprise

Alibaba (NYSE:BABA) is "unlikely" to report a "surprise" first quarter when it reports results on May 26, due at least in part to first-half COVID-related lockdowns in China, Bank of America Eddie Leung said in a research report, Tuesday. Leung reiterated his buy rating and price target of $175 a share on Alibaba's (BABA) stock, noting that the company's core China commerce revenue should rise almost 10% from a year ago, thanks to strength in January and February. Leung added that Alibaba (BABA) could see a "moderate deceleration" of its local services and cloud businesses, falling to 39% and 17% year-over-year growth, respectively. As a result of the lockdown, Leung lowered his revenue and earnings estimates for Alibaba's (BABA) 2023 fiscal year by 3% and 4%, respectively, but left estimates for 2024 unchanged. "[T]he lockdown situation should be well-known to the market and reflected in share prices," Leung wrote in a note to clients, adding there are "limited disruptions to eCommerce delivery in other Tier-1 cities, despite some local restrictions." Despite Leung's middling take on Alibaba's (BABA) outlook, investors got on the company's side, Tuesday, and sent the company's shares up 6% as trading progressed. On Monday, investment firm J.P. Morgan upgraded Alibaba (BABA) and other Chinese tech stocks, citing an abatement to the "significant uncertainties facing the sector."

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