Alibaba Group Holding (BABA) Earnings: 1Q Revenue Misses Estimates Despite Growth in Key Segments

Alibaba Group Holding on Smartkarma

Analysts on Smartkarma are providing bullish insights on Alibaba Group Holding. Ming Lu, in their report “Alibaba (BABA US): 1Q25 Preview”, projects an 8% YoY revenue increase in the first quarter of 2025, attributing it to stable growth across most business lines and a stable operating margin. They set an upside of 94% for March 2025, indicating the stock is overly impacted. In another report by Ying Pan, “[Blue Lotus E-Commerce Sector Update]”, it is mentioned that early sales pulled into May led to disappointing June data, with online retail growing 5.1% YoY. They expect JD and BABA to report earnings beats and guide upbeat on profitability improvement in the second half of 2024.

Moreover, Eric Chen, in their report “China E-Commerce: Stabilizing Property Market Matters a Lot“, indicates that Alibaba is well-positioned to benefit from a stabilizing property market in China. Chen believes that as the worst slump in the property market may be behind, it will lift consumer confidence and improve the growth outlook for the e-commerce sector. They emphasize that a stabilizing housing market is crucial for the performance of leading e-commerce players, with Alibaba being highlighted as the most attractive play in the space.

A look at Alibaba Group Holding Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Alibaba Group Holding holds a positive long-term outlook. With a high Momentum score of 5, the company is showing strong performance in terms of market momentum. Furthermore, Alibaba scores well in Value with a rating of 4, indicating solid value relative to its price. This suggests a favorable investment opportunity for those looking at the company’s potential growth. Additionally, Alibaba’s Resilience score of 4 reflects its ability to withstand market challenges, providing a sense of stability for investors.

While the company’s Dividend and Growth scores are rated at 3, indicating moderate performance in these areas, the overall outlook for Alibaba Group Holding remains optimistic. As a provider of online sales services and various other internet-related offerings on a global scale, Alibaba’s strong performance across different smart scores positions it as a promising investment option for those considering long-term prospects in the digital commerce sector.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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