Recent News
Jan. 15, 2026: Public testing began for tighter Qwen integration across Taobao, Alipay and other consumer apps to enable one-stop AI-assisted shopping and services; Jan. 7, 2026: the company filed disclosures on December 2025 share-capital movements and compliance with Hong Kong listing rules; Jan. 21, 2026: a brokerage research house raised its rating and published a higher price target; Feb. 11–27, 2026: Alibaba unveiled robotics/agentic AI initiatives (RynnBrain/OpenClaw) and faced regulatory guidance from authorities on platform competition, while at least one independent rater trimmed its view.
Technical Analysis
Directional indicators show a bullish setup: ADX at 34.94 signals a strong directional regime, with DI+ recovering from a dip (DI+ 16.71, dip-and-reversal) and DI– showing a peak-and-reverse (DI– 37.02), which together imply bullish directional pressure into the near term.
MACD sits negative at −6.53 while having completed a dip-and-reverse; momentum has begun to lift but the MACD remains marginally below its signal line (signal −6.42), so momentum improvement exists without a confirmed MACD crossover yet.
MRO at −19.84 indicates price sits below the model target and therefore carries potential to increase; the negative MRO magnitude implies a material upside opportunity relative to the target level.
RSI at 38.44 has completed a dip-and-reversal and now trends higher from a low base, consistent with a short-term recovery from oversold conditions rather than extended strength.
Price structure favors a short-term rebound but retains resistance: close $125.41 trades below the 20-day average $131.22, 50-day $151.02 and 200-day $146.09; price hovers just above the 1× lower Bollinger band ($125.28), while the SuperTrend upper at $135.29 and the 26‑day EMA $136.81 form the nearest technical ceilings.
Volume accelerated intraday at ~9.17M versus a 10‑day average of ~6.12M, indicating greater conviction behind recent flows; 42‑day beta 1.42 shows heightened short-term sensitivity versus the 52‑week beta 0.97.
Fundamental Analysis
Earnings and per‑share metrics: reported EPS $7.09 versus an estimate of $10.94, an EPS surprise of −35.19%. Forward EPS per share stands at $1.93 and forward P/E registers ~79.32, reflecting a meaningful gap between trailing earnings and near-term consensus projections.
Profitability: EBIT totaled $26,432,000,000 producing an EBIT margin of 9.28%, below the industry peer mean of 12.52% (industry peer median 12.79%, peer range low −30.95% to high 33.27%); EBIT margin fell ~13.03% QoQ and ~54.35% YoY, signaling margin compression year-over-year despite scale in revenues.
Revenue and cash flow: total revenue $284,843,000,000 with revenue growth YoY −18.996% but a QoQ jump of +256.78%, reflecting lumpy period-to-period timing; operating cash flow $36,032,000,000 and free cash flow $36,032,000,000 produce a free-cash-flow yield of 1.25% (free-cash-flow yield QoQ +274.85%, YoY −67.548%). Cash and short‑term investments total $338,110,000,000, yielding a cash ratio of 0.735 and a current ratio of 1.331 (current ratio QoQ −8.55%, YoY −10.16%).
Margins and returns: gross margin 40.48% (QoQ +3.4%, YoY −3.587%); operating margin 7.08% but down ~65.17% YoY; return on equity 1.576% (down ~67.88% YoY), signaling compressed profitability versus prior periods even as revenue scale persists.
Leverage and capital structure: total debt $262,740,000,000 with net debt $134,566,000,000; debt-to-EBITDA ~9.63 and interest coverage ~10.34x. Book value per share $54.43 and price-to-book ~2.77, below the industry peer mean price-to-book of 4.88 (industry peer median 6.11, peer range low −28.43 to high 31.38), indicating equity trades at a discount to peer book multiples.
Valuation context: headline multiples show P/E ~21.25, enterprise multiple ~102.75 and forward P/E ~79.32; free-cash-flow yield of 1.25% sits above the industry peer mean free-cash-flow yield of ~0.61% when expressed similarly. The current valuation, as determined by WMDST, rates the stock as under‑valued given sizable net cash equivalents, buyback activity and AI monetization optionality relative to present multiples.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-03-19 |
| NEXT REPORT DATE: | 2026-06-18 |
| CASH FLOW | Begin Period Cash Flow | $ 175.4 B |
| Operating Cash Flow | $ 36.0 B | |
| Capital Expenditures | — | |
| Change In Working Capital | $ 19.6 B | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -4.92 B | |
| End Period Cash Flow | $ 170.5 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 284.8 B | |
| Forward Revenue | $ 160.4 B | |
| COSTS | ||
| Cost Of Revenue | $ 169.5 B | |
| Depreciation | $ -841.00 M | |
| Depreciation and Amortization | $ 841.0 M | |
| Research and Development | $ 15.5 B | |
| Total Operating Expenses | $ 264.7 B | |
| PROFITABILITY | ||
| Gross Profit | $ 115.3 B | |
| EBITDA | $ 27.3 B | |
| EBIT | $ 26.4 B | |
| Operating Income | $ 20.2 B | |
| Interest Income | $ 16.2 B | |
| Interest Expense | $ 2.6 B | |
| Net Interest Income | $ 13.7 B | |
| Income Before Tax | $ 23.9 B | |
| Tax Provision | $ 8.5 B | |
| Tax Rate | 35.435 % | |
| Net Income | $ 16.4 B | |
| Net Income From Continuing Operations | $ 16.4 B | |
| EARNINGS | ||
| EPS Estimate | $ 10.94 | |
| EPS Actual | $ 7.09 | |
| EPS Difference | $ -3.85 | |
| EPS Surprise | -35.192 % | |
| Forward EPS | $ 1.93 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.9 T | |
| Intangible Assets | $ 264.1 B | |
| Net Tangible Assets | $ 775.6 B | |
| Total Current Assets | $ 612.2 B | |
| Cash and Short-Term Investments | $ 338.1 B | |
| Cash | $ 128.2 B | |
| Net Receivables | — | |
| Inventory | — | |
| Long-Term Investments | $ 98.3 B | |
| LIABILITIES | ||
| Accounts Payable | — | |
| Short-Term Debt | $ 24.7 B | |
| Total Current Liabilities | $ 459.8 B | |
| Net Debt | $ 134.6 B | |
| Total Debt | $ 262.7 B | |
| Total Liabilities | $ 772.4 B | |
| EQUITY | ||
| Total Equity | $ 1.0 T | |
| Retained Earnings | $ 682.8 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 54.43 | |
| Shares Outstanding | 19.099 B | |
| Revenue Per-Share | $ 14.91 | |
| VALUATION | Market Capitalization | $ 2.9 T |
| Enterprise Value | $ 2.8 T | |
| Enterprise Multiple | 102.75 | |
| Enterprise Multiple QoQ | -4.326 % | |
| Enterprise Multiple YoY | 331.033 % | |
| Enterprise Multiple IPRWA | high: 218.425 BABA: 102.75 mean: 61.118 median: 54.381 low: -170.05 |
|
| EV/R | 9.838 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.807 | |
| Asset To Liability | 2.432 | |
| Debt To Capital | 0.202 | |
| Debt To Assets | 0.14 | |
| Debt To Assets QoQ | -6.422 % | |
| Debt To Assets YoY | 1108.989 % | |
| Debt To Assets IPRWA | high: 1.249 mean: 0.228 median: 0.187 BABA: 0.14 low: 0.007 |
|
| Debt To Equity | 0.253 | |
| Debt To Equity QoQ | -7.337 % | |
| Debt To Equity YoY | 1079.281 % | |
| Debt To Equity IPRWA | high: 4.996 median: 0.372 BABA: 0.253 mean: 0.252 low: -5.764 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.768 | |
| Price To Book QoQ | -5.37 % | |
| Price To Book YoY | 50.74 % | |
| Price To Book IPRWA | high: 31.383 median: 6.112 mean: 4.876 BABA: 2.768 low: -28.433 |
|
| Price To Earnings (P/E) | 21.251 | |
| Price To Earnings QoQ | -41.439 % | |
| Price To Earnings YoY | 370.976 % | |
| Price To Earnings IPRWA | high: 224.995 mean: 115.966 median: 96.129 BABA: 21.251 low: -221.643 |
|
| PE/G Ratio | 0.339 | |
| Price To Sales (P/S) | 10.103 | |
| Price To Sales QoQ | -17.107 % | |
| Price To Sales YoY | 53.963 % | |
| Price To Sales IPRWA | high: 26.155 mean: 12.616 median: 11.775 BABA: 10.103 low: 0.327 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 79.319 | |
| Forward PE/G | 1.267 | |
| Forward P/S | 17.669 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -0.002 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.151 | |
| Asset Turnover Ratio QoQ | 13.995 % | |
| Asset Turnover Ratio YoY | -2.234 % | |
| Asset Turnover Ratio IPRWA | high: 1.018 mean: 0.282 median: 0.276 BABA: 0.151 low: 0.143 |
|
| 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: 152.367 BABA: 0 mean: -39.069 median: -48.654 low: -234.398 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.869 | |
| 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 | $ 775.6 B | |
| Net Working Capital | $ 152.4 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.735 | |
| Current Ratio | 1.331 | |
| Current Ratio QoQ | -8.548 % | |
| Current Ratio YoY | -10.163 % | |
| Current Ratio IPRWA | high: 2.807 BABA: 1.331 mean: 1.081 median: 1.051 low: 0.732 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 9.634 | |
| Cost Of Debt | 0.607 % | |
| Interest Coverage Ratio | 10.337 | |
| Interest Coverage Ratio QoQ | -1.587 % | |
| Interest Coverage Ratio YoY | -54.886 % | |
| Interest Coverage Ratio IPRWA | high: 50.5 median: 40.183 mean: 34.5 BABA: 10.337 low: -23.347 |
|
| Operating Cash Flow Ratio | 0.037 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -0.296 % | |
| Revenue Growth | 14.951 % | |
| Revenue Growth QoQ | 25677.586 % | |
| Revenue Growth YoY | -18.996 % | |
| Revenue Growth IPRWA | high: 34.542 % median: 18.437 % BABA: 14.951 % mean: 14.378 % low: -29.518 % |
|
| Earnings Growth | 62.615 % | |
| Earnings Growth QoQ | -188.89 % | |
| Earnings Growth YoY | 48.97 % | |
| Earnings Growth IPRWA | high: 309.709 % BABA: 62.615 % mean: -2.644 % median: -66.667 % low: -450.0 % |
|
| MARGINS | ||
| Gross Margin | 40.482 % | |
| Gross Margin QoQ | 3.4 % | |
| Gross Margin YoY | -3.587 % | |
| Gross Margin IPRWA | high: 90.408 % mean: 48.523 % median: 48.469 % BABA: 40.482 % low: 18.758 % |
|
| EBIT Margin | 9.279 % | |
| EBIT Margin QoQ | -13.028 % | |
| EBIT Margin YoY | -54.345 % | |
| EBIT Margin IPRWA | high: 33.265 % median: 12.786 % mean: 12.517 % BABA: 9.279 % low: -30.948 % |
|
| Return On Sales (ROS) | 7.078 % | |
| Return On Sales QoQ | 226.928 % | |
| Return On Sales YoY | -65.174 % | |
| Return On Sales IPRWA | high: 31.974 % mean: 12.317 % median: 11.705 % BABA: 7.078 % low: -34.176 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 36.0 B | |
| Free Cash Flow Yield | 1.252 % | |
| Free Cash Flow Yield QoQ | 274.85 % | |
| Free Cash Flow Yield YoY | -67.548 % | |
| Free Cash Flow Yield IPRWA | high: 8.749 % BABA: 1.252 % mean: 0.609 % median: 0.594 % low: -4.818 % |
|
| Free Cash Growth | 256.788 % | |
| Free Cash Growth QoQ | -602.069 % | |
| Free Cash Growth YoY | -93.11 % | |
| Free Cash Growth IPRWA | BABA: 256.788 % high: 210.541 % median: 3.355 % mean: -31.871 % low: -396.502 % |
|
| Free Cash To Net Income | 2.199 | |
| Cash Flow Margin | 6.047 % | |
| Cash Flow To Earnings | 1.051 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.871 % | |
| Return On Assets QoQ | -22.715 % | |
| Return On Assets YoY | -67.931 % | |
| Return On Assets IPRWA | high: 8.14 % mean: 2.784 % median: 2.742 % BABA: 0.871 % low: -11.211 % |
|
| Return On Capital Employed (ROCE) | 1.863 % | |
| Return On Equity (ROE) | 0.016 | |
| Return On Equity QoQ | -22.593 % | |
| Return On Equity YoY | -67.883 % | |
| Return On Equity IPRWA | high: 0.249 median: 0.052 mean: 0.037 BABA: 0.016 low: -0.624 |
|
| DuPont ROE | 1.581 % | |
| Return On Invested Capital (ROIC) | 1.31 % | |
| Return On Invested Capital QoQ | -15.21 % | |
| Return On Invested Capital YoY | -112.493 % | |
| Return On Invested Capital IPRWA | high: 13.791 % median: 4.659 % mean: 4.454 % BABA: 1.31 % low: -25.248 % |
|