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Alibaba Group Holding Ltd (BABA) delivered strong fiscal Q3 2024 results, with revenue growing 8% year-over-year to $38.38 billion, surpassing the $38.19 billion consensus estimate. Adjusted earnings per ADS reached $2.93, exceeding the $2.66 forecast. Key growth drivers included a 32% increase in revenue from Alibaba International Digital Commerce Group to $5.17 billion and a 13% rise in Cloud Intelligence Group revenue to $4.35 billion. Operating cash flow grew 10% to $9.72 billion, and adjusted net income rose 7% to $7 billion. The international commerce retail business saw a 36% revenue increase, supported by AliExpress’ Choice and Trendyol, while the launch of a cloud region in Mexico bolstered double-digit growth in public cloud and AI-related products. Alibaba anticipates its international e-commerce unit will achieve profitability in fiscal 2025 and plans to significantly increase investments in Cloud and AI over the next three years. Analysts have raised Alibaba’s 12-month price target by 21.02% to $148.25, citing structural restructuring, improved earnings outlook, and growth in core e-commerce and cloud businesses. Institutional investors, including major U.S.-based funds, have significantly increased their stakes, while Hong Kong-based funds exited their positions. Financial metrics such as a net margin of 18.55%, ROA of 2.47%, and a debt-to-equity ratio of 0.21 underscore Alibaba’s solid financial health. Despite geopolitical challenges, including U.S. restrictions on Chinese investments, Alibaba’s stock has gained 49.38% year-to-date and 73.50% over the past year. Strategic initiatives in AI, international expansion, and cloud services, along with strong analyst sentiment and institutional support, continue to drive the company’s robust market performance.
Source content provided by Benzinga.
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About BABA

Alibaba is the world's largest online and mobile commerce company as measured by gross merchandise volume. It operates China's online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer). The China commerce retail ... Read more

Ways to trade options* on BABA

Bullish Option Strategy: Long Calls

Traders buy a single call option on a stock or ETF. This strategy can benefit from a price increase while risking more capital than a spread.

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