Ellie Jiang

Macquarie Capital maintains its Outperform rating on Alibaba despite cutting its price target, citing the company's "unique full stack capabilities" on AI infrastructure and strong cloud momentum. The current investment wave is heavily focused on hardware capex and compute demand, driven by rising AI token usage. Alibaba, as the largest cloud service provider in China, is best positioned to benefit from this trend. LONG because the company's strategic positioning in AI and cloud, coupled with its pricing power, is expected to drive future growth and justify current valuations despite near-term earnings pressure. The company fails to execute on its ambitious ¥100B cloud revenue target, competitive pressures in e-commerce erode cash flow further, or AI monetization is slower than expected.