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Investing.com - Jefferies raised its price target on Alibaba (NYSE:BABA) to $178.00 from $165.00 on Wednesday, maintaining a Buy rating on the Chinese e-commerce giant. The stock, currently trading at $147.10, has delivered impressive returns with a 76.39% gain year-to-date.
The investment firm cited expectations for strong execution in Alibaba’s cloud business and its one-stop consumption platform based on recent developments and industry trends.
Jefferies expects Alibaba Cloud’s AI-related revenue to maintain rapid growth with rising external revenue contribution, strengthening the company’s position in the cloud computing sector.
The firm also noted continued synergies between Alibaba’s Quick Commerce and conventional e-commerce operations, with ongoing user experience improvements across its platforms.
Jefferies highlighted the release of Street Stars by Amap as a further advancement in lifestyle services, adding to the company’s diverse ecosystem of digital offerings.
In other recent news, Alibaba Group Holding Ltd reported its financial results for the first quarter of 2025, marking a significant 10% increase in revenue, reaching RMB 247.7 billion. The company also experienced a substantial 76% surge in GAAP net income. However, despite these positive figures, Alibaba encountered a 14% decline in adjusted EBITDA and reported a free cash flow outflow of RMB 18.8 billion. These financial results provide insight into Alibaba’s current fiscal health and growth trajectory. While the earnings report highlights growth in revenue and net income, the decrease in adjusted EBITDA and cash flow outflow may raise questions for investors. The financial community will likely scrutinize these figures as they assess Alibaba’s future performance. Analysts and investors alike will be watching how Alibaba addresses these challenges in the coming quarters.
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