Recent News
On November 25, 2025 Alibaba reported the quarter ended September 30 with revenue of RMB247,795 million and highlighted Cloud Intelligence revenue growth of roughly 34%, while noting continued heavy investment in AI and quick-commerce initiatives. Coverage on November 25–26 emphasized strong AI adoption and triple‑digit AI product growth, continued scaling of instant retail during Singles’ Day, and a reported drop in operating income versus the prior year. On November 26, reports indicated a Pentagon recommendation to consider Alibaba for an updated Section 1260H list, a development framed as reputational risk but not immediate sanctioning. Industry recognition arrived in October with third-party evaluations citing Alibaba Cloud leadership in serverless platforms and accelerating AI deployments across consumer and enterprise products.
Technical Analysis
Directional indicators show a nascent trend: ADX at 23.85 signals an emerging trend rather than a strong directional move, so near-term direction depends on confirmation from other momentum tools.
DI+ displays a dip & reversal, a bullish signal indicating directional buying pressure has returned; DI- shows a peak & reversal, which also reads bullish because DI- has rolled over. Both pattern signals suggest technical advantage shifting toward buyers despite DI- remaining numerically higher than DI+ at present.
MACD registers at -2.57 with a dip & reversal in its trend while the signal line sits at -2.04; the MACD remains negative and below the signal line, so momentum shows an early bullish reversal pattern but lacks a confirmed crossover to validate sustained bullish momentum.
MRO rests at -4.83 with a dip & reversal, indicating the price sits below the model target and carries upward potential as that oscillator corrects toward zero; the negative MRO implies the price may gravitate higher toward fair-value levels absent renewed selling pressure.
RSI at 49.99 with a decreasing trend places momentum near neutral but slightly favoring caution; the index does not show overbought or oversold extremes, so follow-through depends on momentum confirmation.
Price sits at $157.30 inside the 20‑day Bollinger band (lower $154.27 / upper $161.93) and below the 50‑day average ($168.40) but above the 200‑day average ($134.63), a configuration that supports a constructive intermediate bias while short-term resistance remains near the mid‑range averages. The 12‑day EMA at $158.58 trends downward and the 26‑day EMA at $161.51 remains above price, so short‑term moving averages still constrain upside until a decisive crossover occurs.
Ichimoku readings place the price inside the cloud (Senkou A $172.61, Senkou B $154.39), which signals consolidation and congestion rather than a clean trend; a sustained move above the cloud would strengthen bullish conviction, while a slip below Senkou B would reintroduce downside risk.
Volatility and volume patterns show elevated short-term beta (42‑day beta 1.65) versus a lower 52‑week beta (0.86), and daily volume running below multi‑period averages; this combination suggests sharper intraday moves remain possible but conviction needs higher participation to confirm directional moves.
Fundamental Analysis
Earnings and cash-flow metrics present a mixed fundamental backdrop. EPS came in at $4.36 versus an estimate of $5.78, producing an EPS surprise of -24.57% and an absolute miss of $1.42. WMDST notes the EPS shortfall alongside an operating income of $5,365 million for the period ended September 30, 2025.
Profitability compressed: operating margin measures 2.17% and EBIT margin runs 10.67%, with EBIT margin down roughly 49.88% QoQ and down about 51.82% YoY. Gross margin holds at 39.15% with minimal YoY change, indicating revenue mix shifts and investment spend compress operating profitability more than cost of goods dynamics.
Revenue growth reads near flat at 0.06% on the most recent aggregate figure, while reported revenue‑growth QoQ shows -98.78% and YoY shows -102.10% in the provided period metrics, reflecting substantial base effects and reported disposals that materially distort short‑term growth rates.
Balance sheet and cash metrics remain a strength: cash and short‑term investments total $373,572,000,000 and cash stands at $135,069,000,000. Free cash flow equals $10,099,000,000 with a free cash flow yield of 0.33%, and cash conversion ratio sits at 1.22. Current ratio 1.46 and net debt $146,525,000,000 reflect ample liquidity and moderate leverage; debt to assets at 14.95% and debt to equity at 27.27% indicate conservative indebtedness relative to total capital.
Return metrics show modest returns: return on equity 2.04% and return on assets 1.13%, with return on invested capital near 1.54%. Interest coverage remains healthy at 10.50x. Asset turnover at 0.133 demonstrates low capital turnover in absolute terms and suggests expansion of asset base tied to AI and infrastructure investments.
Valuation multiples sit below peer central tendencies where comparable data exists: P/B at 2.92, P/E at 36.29, and P/S at 12.19 all fall below the industry peer mean values reported for those metrics. The enterprise value to revenue multiple and enterprise multiple show elevated raw enterprise figures, but those reflect very large market capitalization and capital deployment plans. WMDST values the stock as under-valued based on the combination of significant cash resources, below‑mean price multiples, and a durable revenue base despite near‑term margin pressure.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-25 |
| NEXT REPORT DATE: | 2026-02-24 |
| CASH FLOW | Begin Period Cash Flow | $ 224.6 B |
| Operating Cash Flow | $ 21.8 B | |
| Capital Expenditures | — | |
| Change In Working Capital | $ -10.92 B | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -49.14 B | |
| End Period Cash Flow | $ 175.4 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 247.8 B | |
| Forward Revenue | $ 138.8 B | |
| COSTS | ||
| Cost Of Revenue | $ 150.8 B | |
| Depreciation | $ -826.00 M | |
| Depreciation and Amortization | $ 826.0 M | |
| Research and Development | $ 17.1 B | |
| Total Operating Expenses | $ 242.4 B | |
| PROFITABILITY | ||
| Gross Profit | $ 97.0 B | |
| EBITDA | $ 27.3 B | |
| EBIT | $ 26.4 B | |
| Operating Income | $ 5.4 B | |
| Interest Income | $ 20.1 B | |
| Interest Expense | $ 2.5 B | |
| Net Interest Income | $ 17.6 B | |
| Income Before Tax | $ 23.9 B | |
| Tax Provision | $ 5.5 B | |
| Tax Rate | 23.201 % | |
| Net Income | $ 21.0 B | |
| Net Income From Continuing Operations | $ 21.0 B | |
| EARNINGS | ||
| EPS Estimate | $ 5.78 | |
| EPS Actual | $ 4.36 | |
| EPS Difference | $ -1.42 | |
| EPS Surprise | -24.567 % | |
| Forward EPS | $ 2.47 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.9 T | |
| Intangible Assets | $ 275.0 B | |
| Net Tangible Assets | $ 757.5 B | |
| Total Current Assets | $ 646.6 B | |
| Cash and Short-Term Investments | $ 373.6 B | |
| Cash | $ 135.1 B | |
| Net Receivables | — | |
| Inventory | — | |
| Long-Term Investments | $ 96.9 B | |
| LIABILITIES | ||
| Accounts Payable | — | |
| Short-Term Debt | $ 26.3 B | |
| Total Current Liabilities | $ 444.1 B | |
| Net Debt | $ 146.5 B | |
| Total Debt | $ 281.6 B | |
| Total Liabilities | $ 772.1 B | |
| EQUITY | ||
| Total Equity | $ 1.0 T | |
| Retained Earnings | $ 666.8 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 54.09 | |
| Shares Outstanding | 19.088 B | |
| Revenue Per-Share | $ 12.98 | |
| VALUATION | Market Capitalization | $ 3.0 T |
| Enterprise Value | $ 2.9 T | |
| Enterprise Multiple | 107.396 | |
| Enterprise Multiple QoQ | 173.619 % | |
| Enterprise Multiple YoY | 298.552 % | |
| Enterprise Multiple IPRWA | high: 255.673 BABA: 107.396 mean: 62.142 median: 53.208 low: -103.623 |
|
| EV/R | 11.816 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.825 | |
| Asset To Liability | 2.44 | |
| Debt To Capital | 0.214 | |
| Debt To Assets | 0.149 | |
| Debt To Assets QoQ | 18.956 % | |
| Debt To Assets YoY | 705.388 % | |
| Debt To Assets IPRWA | high: 1.279 mean: 0.227 median: 0.157 BABA: 0.149 low: 0.008 |
|
| Debt To Equity | 0.273 | |
| Debt To Equity QoQ | 19.112 % | |
| Debt To Equity YoY | 695.131 % | |
| Debt To Equity IPRWA | high: 4.845 mean: 0.469 median: 0.328 BABA: 0.273 low: -2.764 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.925 | |
| Price To Book QoQ | 29.76 % | |
| Price To Book YoY | 54.0 % | |
| Price To Book IPRWA | high: 21.915 mean: 6.851 median: 6.439 BABA: 2.925 low: -15.951 |
|
| Price To Earnings (P/E) | 36.289 | |
| Price To Earnings QoQ | 351.364 % | |
| Price To Earnings YoY | 477.927 % | |
| Price To Earnings IPRWA | high: 343.463 mean: 109.435 median: 103.831 BABA: 36.289 low: -249.146 |
|
| PE/G Ratio | -0.515 | |
| Price To Sales (P/S) | 12.188 | |
| Price To Sales QoQ | 32.094 % | |
| Price To Sales YoY | 59.088 % | |
| Price To Sales IPRWA | high: 32.041 mean: 13.406 median: 13.21 BABA: 12.188 low: 0.015 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 55.845 | |
| Forward PE/G | -0.793 | |
| Forward P/S | 21.756 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -863.222 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.133 | |
| Asset Turnover Ratio QoQ | -2.079 % | |
| Asset Turnover Ratio YoY | -0.375 % | |
| Asset Turnover Ratio IPRWA | high: 1.225 mean: 0.275 median: 0.222 BABA: 0.133 low: 0.044 |
|
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 0.0 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | -100.0 % | |
| Cash Conversion Cycle Days IPRWA | high: 180.649 BABA: 0.0 mean: -29.645 median: -56.832 low: -456.122 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.224 | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.3 T | |
| Net Invested Capital | $ 1.3 T | |
| Invested Capital | $ 1.3 T | |
| Net Tangible Assets | $ 757.5 B | |
| Net Working Capital | $ 202.5 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.841 | |
| Current Ratio | 1.456 | |
| Current Ratio QoQ | 0.507 % | |
| Current Ratio YoY | 6.334 % | |
| Current Ratio IPRWA | high: 4.047 BABA: 1.456 mean: 1.136 median: 1.009 low: 0.375 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 10.328 | |
| Cost Of Debt | 0.753 % | |
| Interest Coverage Ratio | 10.504 | |
| Interest Coverage Ratio QoQ | -50.622 % | |
| Interest Coverage Ratio YoY | -51.327 % | |
| Interest Coverage Ratio IPRWA | high: 58.505 mean: 44.321 median: 27.739 BABA: 10.504 low: -27.501 |
|
| Operating Cash Flow Ratio | 0.049 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.992 % | |
| Revenue Growth | 0.058 % | |
| Revenue Growth QoQ | -98.775 % | |
| Revenue Growth YoY | -102.095 % | |
| Revenue Growth IPRWA | high: 32.51 % mean: 8.014 % median: 5.076 % BABA: 0.058 % low: -44.818 % |
|
| Earnings Growth | -70.441 % | |
| Earnings Growth QoQ | -495.469 % | |
| Earnings Growth YoY | 739.183 % | |
| Earnings Growth IPRWA | high: 200.0 % mean: 19.461 % median: 13.333 % low: -66.667 % BABA: -70.441 % |
|
| MARGINS | ||
| Gross Margin | 39.151 % | |
| Gross Margin QoQ | -12.825 % | |
| Gross Margin YoY | 0.128 % | |
| Gross Margin IPRWA | high: 91.478 % median: 50.785 % mean: 49.419 % BABA: 39.151 % low: 16.878 % |
|
| EBIT Margin | 10.669 % | |
| EBIT Margin QoQ | -49.875 % | |
| EBIT Margin YoY | -51.824 % | |
| EBIT Margin IPRWA | high: 41.852 % mean: 16.324 % median: 14.42 % BABA: 10.669 % low: -75.837 % |
|
| Return On Sales (ROS) | 2.165 % | |
| Return On Sales QoQ | -84.676 % | |
| Return On Sales YoY | -90.224 % | |
| Return On Sales IPRWA | high: 43.739 % mean: 11.427 % median: 7.516 % BABA: 2.165 % low: -50.686 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 10.1 B | |
| Free Cash Flow Yield | 0.334 % | |
| Free Cash Flow Yield QoQ | -63.094 % | |
| Free Cash Flow Yield YoY | 227.451 % | |
| Free Cash Flow Yield IPRWA | high: 7.113 % BABA: 0.334 % median: 0.018 % mean: -0.136 % low: -46.84 % |
|
| Free Cash Growth | -51.146 % | |
| Free Cash Growth QoQ | -62.217 % | |
| Free Cash Growth YoY | -45.872 % | |
| Free Cash Growth IPRWA | high: 303.385 % median: 27.68 % mean: 15.974 % BABA: -51.146 % low: -273.469 % |
|
| Free Cash To Net Income | 0.48 | |
| Cash Flow Margin | 8.816 % | |
| Cash Flow To Earnings | 1.039 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.127 % | |
| Return On Assets QoQ | -49.394 % | |
| Return On Assets YoY | -54.593 % | |
| Return On Assets IPRWA | high: 9.247 % mean: 3.115 % median: 2.898 % BABA: 1.127 % low: -18.856 % |
|
| Return On Capital Employed (ROCE) | 1.836 % | |
| Return On Equity (ROE) | 0.02 | |
| Return On Equity QoQ | -49.227 % | |
| Return On Equity YoY | -55.893 % | |
| Return On Equity IPRWA | high: 0.159 median: 0.047 BABA: 0.02 mean: 0.018 low: -0.58 |
|
| DuPont ROE | 2.054 % | |
| Return On Invested Capital (ROIC) | 1.545 % | |
| Return On Invested Capital QoQ | -55.667 % | |
| Return On Invested Capital YoY | -112.325 % | |
| Return On Invested Capital IPRWA | high: 24.354 % mean: 6.088 % median: 5.154 % BABA: 1.545 % low: -29.346 % |
|