Recent News
Aug 23–26, 2026: Alibaba announced a proposed placing of new shares in Hong Kong and completed an HK$80 billion placing, with pricing disclosed on Aug 24 and closing confirmed on Aug 26. Sept 10, 2026: Alibaba’s Amap unit announced a strategic partnership with Mercedes‑Benz as the first global automotive partner of the Amap Street Stars program.
Technical Analysis
ADX at 19.18 indicates no established trend; directional indicators provide conflicting signals: DI+ shows a peak-and-reversal, which reads as bearish, while DI- shows a peak-and-reversal, which reads as bullish. The combination and low ADX imply range-bound price action with mixed directional pressure that limits conviction for sustained directional moves.
MACD sits negative at -2.05 with a peak-and-reversal trend, indicating bearish momentum; however, the MACD currently sits slightly above its signal line (-2.13), which registers as a bullish cross. The net interpretation: underlying momentum weakened and the recent cross offers only a marginal counterpoint to the prevailing bearish momentum.
MRO at -6.01 (dip-and-reversal) signals the price currently sits below the model target, implying upward pressure toward equilibrium; the negative MRO supports mean-reversion potential rather than trend-driven continuation in the immediate term.
RSI 46.75 with a peak-and-reversal trend sits below neutral, consistent with faded bullish momentum and short-term consolidation rather than oversold buying pressure.
Price trades at $110.63, below the 200‑day average ($131.75) and the 50‑day average ($117.99), and just inside lower Bollinger bandwidth (lower 1x = $108.06). Ichimoku components (Tenkan $111.42, Kijun $118.63, Senkou A $118.78, Senkou B $112.43) place price beneath the cloud, reinforcing short-term bearish bias. SuperTrend lower support at $107.67 sits below the close, offering a nearby technical support reference for swing horizons.
Volume runs below recent averages (today’s volume ~7.26M vs 10‑ and 50‑day averages near 8.2M and 10.7M), consistent with muted conviction behind intraday moves and higher sensitivity to headline-driven events. Overall technicals point to constrained upside with mean-reversion risk dominating until trend strength (ADX) expands above the emerging range threshold.
Fundamental Analysis
Revenue totaled $268,953,000,000 with reported gross profit $102,857,000,000; gross margin stands at 38.24% (gross margin QoQ +10.82%, YoY -14.85%). Reported EBIT $24,660,000,000 yields an EBIT margin of 9.17%; EBIT margin contracted QoQ by -33.58% and YoY by -56.92%, and sits below the industry peer mean (20.212%) and industry peer median (24.71%).
Earnings per share came in at $8.52 versus an estimate of $10.82, an EPS surprise of -21.26%. Forward EPS of $2.32 implies a forward P/E near 53.3 versus a reported trailing P/E of 14.17, signaling a material gap between reported trailing profitability and near-term forward expectations.
Liquidity and cash metrics show cash and short‑term investments of $385,697,000,000 and operating cash flow $22,945,000,000; free cash flow $22,945,000,000 produces a free cash flow yield of 0.99%. Cash conversion and cash flow to earnings exceed parity (cash flow to earnings 216.18%), but free cash growth shows contraction year-over-year (-11.70%). Current ratio 1.36 and cash ratio 0.72 indicate ample short-term coverage relative to typical operating cycles.
Leverage displays mixed characteristics: total debt $266,530,000,000, debt-to-equity 0.25, and debt-to-EBITDA 10.52; interest coverage around 10.48x. Asset efficiency remains modest with an asset turnover ratio of 13.89%, below the industry peer mean (25.718%). Return metrics show return on equity ~1.01% and return on assets ~0.55%, both below industry peer means/medians, while earnings growth YoY of 70.54% contrasts with QoQ deterioration (-14.96%).
Valuation summary: enterprise value stands near $2.197T with an enterprise multiple of 86.77; price-to-sales 8.61 and price-to-book 2.21. The current valuation as determined by WMDST: over-valued. Taken together, weaker operating margins, the EPS shortfall versus estimate, and elevated enterprise multiples underpin the over-valued assessment despite large cash balances and strong nominal revenues.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-06-30 |
| REPORT DATE: | 2026-08-20 |
| NEXT REPORT DATE: | 2026-11-19 |
| CASH FLOW | Begin Period Cash Flow | $ 173.6 B |
| Operating Cash Flow | $ 22.9 B | |
| Capital Expenditures | — | |
| Change In Working Capital | $ 12.3 B | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 11.9 B | |
| End Period Cash Flow | $ 185.5 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 269.0 B | |
| Forward Revenue | $ 281.6 B | |
| COSTS | ||
| Cost Of Revenue | $ 166.1 B | |
| Depreciation | $ -665.00 M | |
| Depreciation and Amortization | $ 665.0 M | |
| Research and Development | $ 22.5 B | |
| Total Operating Expenses | $ 249.3 B | |
| PROFITABILITY | ||
| Gross Profit | $ 102.9 B | |
| EBITDA | $ 25.3 B | |
| EBIT | $ 24.7 B | |
| Operating Income | $ 19.6 B | |
| Interest Income | $ 9.0 B | |
| Interest Expense | $ 2.4 B | |
| Net Interest Income | $ 6.7 B | |
| Income Before Tax | $ 22.3 B | |
| Tax Provision | $ 12.8 B | |
| Tax Rate | 40.0 % | |
| Net Income | $ 10.6 B | |
| Net Income From Continuing Operations | $ 10.6 B | |
| EARNINGS | ||
| EPS Estimate | $ 10.82 | |
| EPS Actual | $ 8.52 | |
| EPS Difference | $ -2.30 | |
| EPS Surprise | -21.257 % | |
| Forward EPS | $ 2.32 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.0 T | |
| Intangible Assets | $ 259.2 B | |
| Net Tangible Assets | $ 789.9 B | |
| Total Current Assets | $ 724.9 B | |
| Cash and Short-Term Investments | $ 385.7 B | |
| Cash | $ 142.9 B | |
| Net Receivables | — | |
| Inventory | — | |
| Long-Term Investments | $ 119.4 B | |
| LIABILITIES | ||
| Accounts Payable | — | |
| Short-Term Debt | $ 30.6 B | |
| Total Current Liabilities | $ 532.3 B | |
| Net Debt | $ 123.6 B | |
| Total Debt | $ 266.5 B | |
| Total Liabilities | $ 848.2 B | |
| EQUITY | ||
| Total Equity | $ 1.0 T | |
| Retained Earnings | $ 701.9 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 54.66 | |
| Shares Outstanding | 19.193 B | |
| Revenue Per-Share | $ 14.01 | |
| VALUATION | Market Capitalization | $ 2.3 T |
| Enterprise Value | $ 2.2 T | |
| Enterprise Multiple | 86.765 | |
| Enterprise Multiple QoQ | 24.498 % | |
| Enterprise Multiple YoY | 121.057 % | |
| Enterprise Multiple IPRWA | high: 253.049 BABA: 86.765 mean: 26.639 median: 1.804 low: -156.558 |
|
| EV/R | 8.17 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.87 | |
| Asset To Liability | 2.313 | |
| Debt To Capital | 0.203 | |
| Debt To Assets | 0.136 | |
| Debt To Assets QoQ | -7.924 % | |
| Debt To Assets YoY | 8.101 % | |
| Debt To Assets IPRWA | high: 1.261 mean: 0.2 BABA: 0.136 median: 0.057 low: 0.006 |
|
| Debt To Equity | 0.254 | |
| Debt To Equity QoQ | -4.323 % | |
| Debt To Equity YoY | 10.962 % | |
| Debt To Equity IPRWA | high: 4.702 BABA: 0.254 mean: 0.134 median: 0.011 low: -4.327 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.208 | |
| Price To Book QoQ | -8.427 % | |
| Price To Book YoY | -2.037 % | |
| Price To Book IPRWA | high: 25.676 BABA: 2.208 mean: 1.85 median: 1.12 low: -12.509 |
|
| Price To Earnings (P/E) | 14.166 | |
| Price To Earnings QoQ | -93.621 % | |
| Price To Earnings YoY | 76.202 % | |
| Price To Earnings IPRWA | high: 390.589 mean: 47.708 BABA: 14.166 median: 4.558 low: -561.411 |
|
| PE/G Ratio | 0.011 | |
| Price To Sales (P/S) | 8.613 | |
| Price To Sales QoQ | -18.059 % | |
| Price To Sales YoY | -6.649 % | |
| Price To Sales IPRWA | high: 18.346 BABA: 8.613 mean: 7.516 median: 4.465 low: 0.015 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 53.325 | |
| Forward PE/G | 0.042 | |
| Forward P/S | 8.208 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -2.532 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.139 | |
| Asset Turnover Ratio QoQ | 8.117 % | |
| Asset Turnover Ratio YoY | 2.418 % | |
| Asset Turnover Ratio IPRWA | high: 1.342 mean: 0.257 median: 0.173 BABA: 0.139 low: 0.01 |
|
| 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) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 179.221 BABA: 0 mean: -103.842 low: -208.345 median: -208.345 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.396 | |
| 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 | $ 789.9 B | |
| Net Working Capital | $ 192.6 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.725 | |
| Current Ratio | 1.362 | |
| Current Ratio QoQ | 6.224 % | |
| Current Ratio YoY | -5.985 % | |
| Current Ratio IPRWA | high: 3.926 median: 2.618 mean: 1.978 BABA: 1.362 low: 0.423 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 10.524 | |
| Cost Of Debt | 0.515 % | |
| Interest Coverage Ratio | 10.485 | |
| Interest Coverage Ratio QoQ | -30.067 % | |
| Interest Coverage Ratio YoY | -50.711 % | |
| Interest Coverage Ratio IPRWA | high: 97.413 mean: 24.517 median: 17.836 BABA: 10.485 low: -31.696 |
|
| Operating Cash Flow Ratio | 0.021 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.751 % | |
| Revenue Growth | 10.507 % | |
| Revenue Growth QoQ | -172.183 % | |
| Revenue Growth YoY | 121.854 % | |
| Revenue Growth IPRWA | high: 32.899 % BABA: 10.507 % mean: 10.459 % median: 5.77 % low: -17.413 % |
|
| Earnings Growth | 1274.194 % | |
| Earnings Growth QoQ | -1496.3 % | |
| Earnings Growth YoY | 7053.571 % | |
| Earnings Growth IPRWA | BABA: 1274.194 % high: 265.385 % median: 103.26 % mean: 75.985 % low: -217.647 % |
|
| MARGINS | ||
| Gross Margin | 38.243 % | |
| Gross Margin QoQ | 10.82 % | |
| Gross Margin YoY | -14.847 % | |
| Gross Margin IPRWA | high: 90.95 % median: 57.264 % mean: 52.973 % BABA: 38.243 % low: 12.404 % |
|
| EBIT Margin | 9.169 % | |
| EBIT Margin QoQ | -33.582 % | |
| EBIT Margin YoY | -56.923 % | |
| EBIT Margin IPRWA | high: 55.576 % median: 24.71 % mean: 20.212 % BABA: 9.169 % low: -23.805 % |
|
| Return On Sales (ROS) | 7.295 % | |
| Return On Sales QoQ | -2196.264 % | |
| Return On Sales YoY | -48.365 % | |
| Return On Sales IPRWA | high: 34.004 % median: 24.71 % mean: 18.632 % BABA: 7.295 % low: -23.805 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 22.9 B | |
| Free Cash Flow Yield | 0.991 % | |
| Free Cash Flow Yield QoQ | -121.572 % | |
| Free Cash Flow Yield YoY | 9.503 % | |
| Free Cash Flow Yield IPRWA | high: 16.52 % median: 5.117 % mean: 3.554 % BABA: 0.991 % low: -18.948 % |
|
| Free Cash Growth | -119.523 % | |
| Free Cash Growth QoQ | -71.954 % | |
| Free Cash Growth YoY | -11.704 % | |
| Free Cash Growth IPRWA | high: 233.929 % median: 56.096 % mean: 35.049 % BABA: -119.523 % low: -384.321 % |
|
| Free Cash To Net Income | 2.162 | |
| Cash Flow Margin | 4.194 % | |
| Cash Flow To Earnings | 1.063 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.548 % | |
| Return On Assets QoQ | -59.377 % | |
| Return On Assets YoY | -75.393 % | |
| Return On Assets IPRWA | high: 6.794 % median: 4.178 % mean: 3.28 % BABA: 0.548 % low: -10.665 % |
|
| Return On Capital Employed (ROCE) | 1.725 % | |
| Return On Equity (ROE) | 0.01 | |
| Return On Equity QoQ | -57.973 % | |
| Return On Equity YoY | -74.763 % | |
| Return On Equity IPRWA | high: 0.355 median: 0.061 mean: 0.017 BABA: 0.01 low: -0.267 |
|
| DuPont ROE | 1.006 % | |
| Return On Invested Capital (ROIC) | 1.125 % | |
| Return On Invested Capital QoQ | -42.661 % | |
| Return On Invested Capital YoY | -67.719 % | |
| Return On Invested Capital IPRWA | high: 23.192 % mean: 7.137 % median: 5.066 % BABA: 1.125 % low: -16.272 % |
|