Alibaba’s Q4 Stumble Fails to Deter Analyst Optimism Amid Cloud Growth

Alibaba Group’s American depositary shares tumbled 7.6% following disappointing fiscal fourth-quarter results, yet the market’s long-term outlook remains bullish. The Chinese e-commerce giant missed earnings expectations but demonstrated resilience in key growth sectors.

Cloud computing revenue surged 18% year-over-year, with AI-driven products achieving triple-digit growth. Taobao and Tmall Group outperformed with 9% revenue growth, while aggressive capital returns—including $12 billion in share buybacks and a dual-part dividend—signaled confidence in underlying fundamentals.

Analysts maintain Buy ratings with price targets implying 34% upside potential, suggesting the market may be undervaluing Alibaba’s strategic positioning in China’s digital transformation. The divergence between short-term performance and long-term prospects highlights the complex dynamics of tech investments in evolving regulatory environments.