Key Takeaways Alibaba narrowed AIDC's fiscal 2026 adjusted EBITA loss, moving the unit closer to break-even.Brand and AI tools are boosting monetization, merchant productivity and customer engagement.European compliance costs could slow profitability as fiscal 2027 earnings are projected to rise 15.28%. Alibaba’s (BABA - Free Report) international commerce business is narrowing losses, positioning the segment as a stronger long-term growth driver. Alibaba International Digital Commerce Group (AIDC) — which includes AliExpress, Alibaba.com, Lazada and Trendyol — significantly reduced its adjusted EBITA loss in fiscal 2026 as management improved logistics efficiency, optimized operations and enhanced unit economics, bringing the business closer to break-even.
The Brand+ initiative is attracting higher-quality brands and consumers, supporting stronger monetization, while AI-powered tools such as Accio and Accio Work are helping merchants automate sourcing, product listings and business operations, improving productivity and customer engagement. Alibaba.com’s global B2B marketplace, spanning buyers in more than 190 countries and generating revenues from memberships, value-added services, logistics and digital marketing, provides a diversified foundation for future international expansion. Alibaba has also continued strengthening its cross-border commerce ecosystem by expanding AI capabilities for merchants and broadening its Trade Assurance program into additional markets, reinforcing its strategy to accelerate profitable international growth.
However, investors should monitor regulatory risks, particularly in Europe, where increased compliance requirements and penalties for marketplace operators could raise operating costs and slow the path to sustained profitability for Alibaba's international commerce business.
According to the Zacks Consensus Estimate, earnings are projected to grow 15.28% in fiscal 2027, indicating that continued improvement in international commerce could become an increasingly important contributor to Alibaba's long-term profitability and sustainable growth.
How Rivals Stack Up Against BABAAmazon (AMZN - Free Report) challenges Alibaba through its vast international marketplace, fulfillment network and Prime ecosystem. Amazon benefits from seller-friendly policies, including lower fees in Europe and Brazil, while faster delivery and logistics strengthen global reach. The company also expands cross-border opportunities through growing international operations. Amazon's scale, fulfillment efficiency and trusted brand remain key competitive advantages.
Global-e Online (GLBE - Free Report) competes with Alibaba by enabling brands to sell globally through localized merchant-of-record services. Global-e Online differentiates itself with compliance, duties, taxes, payments and fulfillment capabilities, while Managed Markets and Borderfree expand merchant reach. Global-e Online also benefits from AI-driven automation and growing demand for seamless cross-border commerce, reinforcing its competitive position.
BABA’s Share Price Performance, Valuation & EstimatesBABA shares have declined 33.5% over the past six months compared with the industry’s fall of 4.2%.
BABA’s Six-Month Price Performance
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company's shares currently trade at 14.78 forward earnings, lower than 21.63 for the industry. BABA has a Value Score of C.
BABA’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2027 EPS has declined 6.78% to $6.88 over the past 60 days, and those for fiscal 2028 have decreased 9.06% to $9.53. However, the estimate still reflects robust year-over-year growth of 76.86%.
Image Source: Zacks Investment Research
Alibaba currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alibaba v poslední obchodní den klesla o 2,14 % na 114,06 USD, tedy méně než S&P 500, který oslabil o 1,21 %. Trh čeká výsledky s EPS 1,94 USD a výnosy 38,63 mld. USD.
Alibaba (BABA - Free Report) closed the most recent trading day at $114.06, moving -2.14% from the previous trading session. This change lagged the S&P 500's 1.21% loss on the day. Elsewhere, the Dow lost 0.97%, while the tech-heavy Nasdaq lost 2.15%.
Shares of the online retailer witnessed a gain of 16.79% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 2.27%, and the S&P 500's gain of 0.42%.
Market participants will be closely following the financial results of Alibaba in its upcoming release. On that day, Alibaba is projected to report earnings of $1.94 per share, which would represent a year-over-year decline of 5.83%. Alongside, our most recent consensus estimate is anticipating revenue of $38.63 billion, indicating a 11.74% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.88 per share and a revenue of $167.61 billion, indicating changes of +76.86% and +15.28%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Alibaba. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.1% lower. Right now, Alibaba possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Alibaba is currently being traded at a Forward P/E ratio of 16.93. For comparison, its industry has an average Forward P/E of 16.93, which means Alibaba is trading at no noticeable deviation to the group.
We can additionally observe that BABA currently boasts a PEG ratio of 1.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.11.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Jim Cramer řekl, že Alibaba je „stále nejlepší způsob, jak hrát Čínu“, a doporučil držet pozici. Akcie v pondělí otevřely na 114,97 USD a intradenně vyskočily o 5,71 %; letos jsou dole zhruba 17,51 %.
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On the July 16, 2026 episode of Mad Money, a caller identified as D phoned in about his sizable Alibaba (NYSE:BABA | BABA Price Prediction) position and asked Jim Cramer whether patience was still the right call. Cramer’s response was to hold the position and let the investment cycle play out.
Cramer told D, “I think you need to have patience here. I think it’s just down on a dip. It’s really still the best way to play China.“ He then framed his own geopolitical stance, saying, “I am a harder line on the Chinese than most people you see on air. But you know what? I want to try to help people make money, and I think you can make money on Alibaba.“ Cramer also referenced China’s GDP growth figures as “down 20% and 4.4%” during the segment.
Alibaba Is Sacrificing Profits to Build Its AI Future Alibaba, run by CEO Eddie Wu, is in a deliberate reinvestment phase. Fiscal Q4 2026, reported May 13, 2026, showed revenue of $35.28 billion, up 3% YoY, with EPS of $0.09 and an operating loss of $123 million. Adjusted EBITA collapsed 84% to $740 million as the company poured capital into AI infrastructure and quick commerce. Free cash flow ran to negative $2.508 billion on capex of $3.898 billion.
Cloud Revenue Jumps 40% as Alibaba’s AI Bet Takes Off The bright spot was the business’s cloud unit. Cloud Intelligence Group revenue accelerated to 40% growth, with AI-related products at 30% of external cloud revenue, hitting an 11th consecutive quarter of triple-digit AI product growth. CEO Eddie Wu said, “Alibaba’s full-stack AI investments have progressed from incubation to commercialization at scale.”
BABA opened at $114.97 on Monday, July 20, before soaring 5.71% in intraday trading. The stock is down roughly 17.51% year-to-date but up 13.50% over the past month. Wall Street’s consensus target sits at $190.01, with 8 Strong Buy and 30 Buy ratings against just 2 negative calls.
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Cramer Says Balance Alibaba With These 2 Long-Term Winners Cramer paired his Alibaba call with 2 other top long-term ideas: “If you want some long-term winners, look at something like a J&J or Wells Fargo.” Both fit the steady-compounder profile that balances a volatile China ADR.
Johnson & Johnson (NYSE:JNJ) posted Q1 2026 revenue of $24.06B, up 9.9% YoY, and raised FY guidance to $100.3B-$101.3B in revenue with adjusted EPS of $11.45-$11.65. It just delivered its 64th consecutive year of dividend increases. Shares are up 23.63% YTD and carry a beta of 0.235.
Wells Fargo (NYSE:WFC), under CEO Charlie Scharf, reported Q1 2026 revenue of $21.45B and EPS of $1.60, returned $5.4B to shareholders including dividends, and now targets ROTCE of 17-18% after the Fed’s asset cap was removed in 2025. It trades at a forward P/E of just 12.
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AliExpress dostal od EU rekordní pokutu 550 milionů eur za to, že na platformě neřešil prodej nelegálního, nebezpečného a padělaného zboží. Firma musí do 20. října navrhnout nápravná opatření.
The logo of AliExpress is pictured at AliExpress store, in Granada, Spain, July 22, 2024. REUTERS/Jon Nazca/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesCommission says AliExpress left counterfeit goods, unsafe toys and dangerous cosmetics online for weeksAliExpress faces October 20 deadline for remediesFurther penalty possible if remedies not sufficientAliExpress had 193 million European users last yearBRUSSELS, July 20 (Reuters) - Alibaba's (9988.HK), opens new tab AliExpress was hit with a record €550 million ($629 million) fine from the European Union on Monday for failing to tackle sales of illegal, unsafe and counterfeit products on its platform.
The fine was the third issued by the European Commission under the EU's landmark Digital Services Act, which requires very large online platforms to do more to counter illegal and harmful content.
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The Commission charged AliExpress in June last year with failing to comply with a DSA requirement to assess and mitigate the risks of dissemination of illegal products.
It set an October 20 deadline for AliExpress to propose remedial measures, and the company could face further penalties if the regulator decides in December that they do not comply with the DSA.
"This is very dangerous for consumers, unfair for companies which are complying with all our rules," EU tech chief Henna Virkkunen told reporters.
She pointed to AliExpress's 193 million users in Europe last year versus Shein's 156 million and Temu's 130 million. Temu has also been fined under the DSA and Shein is facing an ongoing investigation.
"One in five Europeans say they shop once a month from Shein, Temu and AliExpress," Virkkunen said.
AliExpress criticised the EU fine, saying it was excessive.
"We disagree with today's decision and the disproportionate fine, which does not adequately reflect our established framework and the significant, proactive enhancements we have made," AliExpress said in an email.
"We are carefully reviewing the decision and considering all available options."
ALIEXPRESS PENALTY HIGHER THAN FINES FOR MUSK'S X AND TEMUThe Commission said that AliExpress had not properly evaluated whether it had enough people to review the risks and had overestimated the effectiveness of its system in detecting and removing illegal products.
The regulator criticised the company's recommender and advertising systems for exacerbating the spread of illegal products and its reliance on one quantitative indicator to measure its moderation system to prevent the risk of illegal products appearing or reappearing in similar forms.
It said the failure of AliExpress to detect illegal products meant that illegal products ranging from counterfeit products to unsafe toys and dangerous cosmetics remained online for many weeks.
The Commission also took issue with the company's ineffective penalty policy, which resulted in penalised businesses continuing to sell illegal products on its platform.
It said that the mandatory AliExpress "brand authorisation" system – intended to prevent counterfeit sales – was ineffective and understaffed and was easily circumvented by traders selling fake products.
The regulator said the novelty of the DSA was a mitigating factor in calculating the fine, which could have been higher.
The penalty is significantly higher than the €120 million handed out to Elon Musk's social media platform X in December last year and the €200 million Temu was fined last May, both for DSA violations.
AliExpress dodged a fine, which could be as much as 6% of its global annual turnover, in June last year after agreeing to measures to tackle the dissemination of potentially illegal and pornographic materials on its platform.
($1 = 0.8743 euros)
Reporting by Foo Yun Chee Editing by Joe Bavier and David Goodman
Our Standards: The Thomson Reuters Trust Principles., opens new tab
An agenda-setting and market-moving journalist, Foo Yun Chee is a 21-year veteran at Reuters. Her stories on high profile mergers have pushed up the European telecoms index, lifted companies' shares and helped investors decide on their next move. Her knowledge and experience of European antitrust laws and developments helped her break stories on Microsoft, Google, Amazon, Meta and Apple, numerous market-moving mergers and antitrust investigations. She has previously reported on Greek politics and companies, when Greece's entry into the eurozone meant it punched above its weight on the international stage, as well as on Dutch corporate giants and the quirks of Dutch society and culture that never fail to charm readers.
Alibaba's US-listed shares rose more than 6% on Wednesday after the Chinese technology giant confirmed that its Qwen artificial intelligence model will power Apple Intelligence features for users in China.
This marks a major milestone in Apple's long-delayed AI rollout in the country.
Apple shares also gained about 1.8%, while Baidu's US-listed stock climbed roughly 2.8% after the company separately confirmed it was also collaborating with Apple on AI features for Chinese iPhone users.
The announcement came after China's cyberspace regulator approved Apple Intelligence for use on iPhones in China, removing one of the biggest regulatory hurdles that had delayed the launch since Apple first unveiled the AI platform in 2024.
China requires all large language models and generative AI services to obtain regulatory approval before they can be offered to the public.
Apple Intelligence and Samsung's Galaxy AI were the only foreign AI services approved in the latest batch.
Domestic smartphone makers Huawei, Oppo, Vivo, Xiaomi and ZTE also received approvals, with ByteDance serving as ZTE's AI partner.
The approval follows months of discussions between Apple and Chinese authorities as geopolitical tensions between Washington and Beijing have intensified over artificial intelligence and advanced technology.
An Alibaba spokesperson confirmed to CNBC that the company's AI model would become part of Apple's ecosystem in China.
"Qwen will be integrated into Apple Intelligence experiences within iOS, iPadOS, macOS, and visionOS for users in China," the spokesperson said.
According to Bloomberg, Qwen will enable capabilities including text generation, image generation, and image understanding across Apple's devices without requiring users to switch between separate applications.
"The Apple-Qwen integration gives users the ability to access the model's capabilities, like text and image understanding and generation, without needing to jump between tools," the Alibaba spokesperson added.
Alongside Alibaba, Apple is also collaborating with Baidu to develop AI features tailored for Chinese users.
A Baidu representative told the South China Morning Post that the company was working with Apple on Apple Intelligence features for the Chinese market.
Reuters also reported that Baidu would contribute to Apple's localized AI services.
The dual partnerships underscore Apple's strategy of working with domestic AI leaders to comply with China's regulatory framework while expanding Apple Intelligence outside Western markets.
The announcement comes amid growing competition between Chinese and US artificial intelligence companies.
Earlier this month, Alibaba prohibited employees from using Anthropic's AI models, while US lawmakers have been exploring ways to curb adoption of Chinese AI systems by American companies.
Separately, reports indicated that Meta had been forced to unwind its planned $2 billion acquisition of Chinese AI startup Manus following intervention by Beijing.
The development also coincides with Apple's efforts to improve on-device AI capabilities.
CNBC reported on Tuesday that Apple is in discussions with Silicon Valley startup PrismML, which claims it can compress advanced AI models sufficiently to run directly on iPhones.
PrismML, a Caltech spinout backed by Khosla Ventures, recently released compressed versions of Alibaba's open-source Qwen model, reducing its size from roughly 54 GB to less than 4 GB, allowing the full 27-billion-parameter model to operate on an iPhone 15 or newer device.
Akcie Alibaba na burze v USA v úterý vyskočily téměř o 11 % po dočasném právním odkladu v USA a před zveřejněním výsledků. Její červnové výnosy mají podle Jefferies vzrůst o 9 % na zhruba RMB270 miliard.
Alibaba Group (NYSE:BABA)'s US-listed shares jumped almost 11% on Tuesday, supported by a temporary legal reprieve in the United States and growing optimism ahead of the company's upcoming earnings report.
Investor sentiment improved after a US federal judge temporarily blocked restrictions tied to the Pentagon's designation of Alibaba under its Section 1260H list while the company's legal challenge proceeds, according to Bloomberg.
The order allows Alibaba to continue working with US lobbying firms during the court process, preserving its ability to engage with US policymakers on issues related to its cloud computing, e-commerce and capital markets businesses.
The legal challenge stems from the US Department of Defense's June decision to add Alibaba, along with several other Chinese companies, to its list of entities identified as having ties to China's military. The broader review of the designation remains ongoing.
Also supporting the stock was growing optimism ahead of Alibaba's June-quarter earnings, expected in late August or early September.
Jefferies expects Alibaba to deliver "strong execution despite macro headwinds," with combined EBITA from its China e-commerce and Alibaba International Digital Commerce businesses remaining roughly flat year over year.
The firm believes that weakness in industry gross merchandise value growth is already reflected in the stock price and reaffirmed Alibaba as its top pick on its artificial intelligence investment theme.
The analysts forecast total June-quarter revenue to increase 9% year over year to about RMB270 billion, in line with market consensus. They expect Cloud Intelligent Group revenue to grow 45% from a year earlier, above consensus estimates, driven by demand for artificial intelligence services and model-as-a-service offerings. Jefferies also expects cloud margins to improve sequentially and forecasts Alibaba International Digital Commerce Group will return to profit during the quarter.
The analysts wrote that stronger cloud performance and improving fundamentals in Alibaba's Quick Commerce business should help offset softer trends in China's broader online retail market, where industry online shopping gross merchandise value growth slowed during April and May.
Alibaba stáhla z platformy Qwen funkce AI společníků, protože Čína zpřísňuje pravidla pro AI služby, které působí lidsky. Akcie v Hongkongu ve stejném týdnu vyskočily o 12,2 %.
Key Takeaways Alibaba removed Qwen AI companion features as China prepares new rules for human-like AI services.BABA shares jumped 12.2% after signs of narrowing instant-commerce losses and steady profitability.Alibaba Cloud revenues rose 38% as AI product revenues logged triple-digit growth for an 11th quarter. Alibaba Group (BABA - Free Report) is pulling artificial intelligence (AI) companion features from its Qwen platform as Beijing prepares to enforce sweeping new rules on humanlike AI services, even as the stock stages its sharpest rally in months on unrelated signs of operational improvement. Qwen's humanlike and user-created agents stopped working on July 10, with wider agent services following five days later, aligning the shutdown with the July 15 rollout of China's first dedicated regulatory framework governing AI that simulates human personality.
The measure, co-issued on April 10, 2026, by the Cyberspace Administration of China and four other agencies, cites concerns including radicalization, data privacy, psychological harm and compulsive use. Compliance requires anti-addiction systems, mandatory usage notifications and real-time detection of unhealthy dependence — obligations that clash with agents built to remember users and sustain ongoing relationships. Unlike ByteDance, which offered a data-export window for its Doubao personas, Alibaba has not detailed a migration path for affected Qwen users.
The regulatory retreat came in the same week Alibaba shares jumped 12.2% in Hong Kong to HK$107.5, their largest single-session gain since September 2025. The move followed a pre-earnings briefing indicating losses in the company's instant-commerce business narrowed meaningfully in the June quarter while overall profitability held steady, reigniting investor confidence ahead of the August 28 earnings report. Sentiment was further supported by reports that Alibaba is consolidating three separate enterprise AI Agent tools — QoderWork, Wukong and MuleRun — into a single productivity platform led by DingTalk chief executive Chen Yusen, alongside reports of accelerating Alibaba Cloud revenue growth in the first quarter of fiscal 2027.
The developments follow a fourth-quarter fiscal 2026 report in which Alibaba's Cloud Intelligence Group posted revenues of 41.63 billion yuan ($6.04 billion), up 38% year over year, with AI-related product revenues extending triple-digit annual growth for an eleventh consecutive quarter and representing 30% of the cloud unit's external revenues. Group-wide, total revenues rose 3% to 243.38 billion yuan, while adjusted EBITA fell 84% amid heavy AI infrastructure and quick-commerce spending. Together, the two threads illustrate a company navigating tighter domestic rules on consumer-facing AI even as its cloud and enterprise AI ambitions draw renewed investor attention.
U.S. Peers Navigate Similar AI Investment CyclesAlibaba's heavy AI infrastructure spending mirrors trends at Microsoft (MSFT - Free Report) and Amazon (AMZN - Free Report) , both of which have posted comparable margin pressure from AI capital expenditure. Microsoft has continued expanding data-center capacity to support its cloud AI services, while Amazon has similarly scaled AI infrastructure investment across its cloud unit, each citing rising demand for AI-related workloads. Unlike Alibaba, neither Microsoft nor Amazon faces domestic regulatory restrictions on humanlike AI companion features, since such rules remain specific to China's market. Microsoft and Amazon shares have shown more muted single-session volatility than Alibaba's recent surge, reflecting differing investor sensitivity to regulatory versus earnings-driven catalysts.
BABA’s Share Price Performance, Valuation & EstimatesBABA shares have plunged 33% in the year-to-date period, underperforming the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector’s decline 0.9% and 0.3%, respectively.
BABA’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, BABA stock is currently trading at a trailing 12-month Price/Earnings ratio of 31.06X compared with the sector’s 28.6X. BABA has a Value Score of D.
BABA’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $6.86 per share, down 5.9% over the past 30 days, indicating a 76.35% year-over-year increase.
Alibaba currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ark Invest Cathie Wood od poloviny května prodal téměř celý podíl v Alibaba, včetně jednorázového prodeje za 54 milionů USD koncem června. Akcie zůstávají pod tlakem kvůli ztrátě 848 milionů juanů a rostoucím politickým rizikům.
Since mid-May, Cathie Wood's Ark Invest has liquidated almost all of its position in Alibaba Group (BABA +8.73%). That included a $54 million sale of the Chinese e-commerce and artificial intelligence (AI) stock in a single day in late June.
Wood, who is both the CEO and the public face of the company, has not publicly commented on this move, which some investors may treat as a sell signal in itself. Nonetheless, investors should probably look more closely at Alibaba's fundamentals and business environment before making such a decision on the consumer discretionary stock.
Image source: The Motley Fool.
A sudden reversal Alibaba stock has lost approximately half of its value since it reached its 52-week peak in October. At that time, Ark Invest owned around 99,000 shares of Alibaba.
As the stock began to correct in November, Wood increased her position in it. However, she began selling the stock aggressively at the beginning of June, and as of the time of this writing, she has sold nearly all of Ark Invest's Alibaba stock.
Today's Change
(
8.73
%) $
8.57
Current Price
$
106.71
The first round of bad news came from its May 13 earnings report. Its loss of 848 million yuan ($123 million) stood in stark contrast to the profit of 28.4 billion yuan ($4.2 billion) it reported in the prior-year quarter.
Moreover, free cash flow (FCF) continues to drop. In the quarter, its FCF was negative $2.5 billion, down from $544 million in FCF 12 months ago. Alibaba is engaging in heavy capital expenditures in its efforts to remain competitive in the AI space; that's likely the reason its free cash flow went negative.
If that were all the bad news, one might be able to discount it, based on the argument that Alibaba's high spending today will benefit the company in the long term. However, rising political tensions may have made the stock too risky to hold.
In May, it was reported that China had imposed travel restrictions on its AI professionals, sparking concern that it was isolating its AI sector and reducing collaboration. And the U.S. and Chinese governments remain at odds on AI hardware. In early June, the U.S. Defense Department listed Alibaba as a "Chinese military company," and not surprisingly, that designation has apparently impacted its stock.
Although Alibaba trades at a price-to-earnings ratio (P/E) of just 16, the combination of all of these factors has left many investors with the view that it's too risky to touch -- including, apparently, Cathie Wood and her team.
Is it time to sell Alibaba stock? Knowing Alibaba's situation, investors who don't have a huge tolerance for risk should probably sell the stock.
Admittedly, the 16 P/E ratio makes it a tempting option. If its AI investments eventually pay off and the Chinese and U.S. governments start to make moves that reassure investors, the stock price could surge. That by itself is a good argument for holding a speculative position.
Nonetheless, the two governments seem intent on imposing trade restrictions on each other, and that political risk alone could sink the Alibaba investment thesis, regardless of its financial metrics. Given the uncertainties around the company's business environment, it probably makes sense to follow Ark Invest's lead and avoid holding a large position in Alibaba stock.
Alibaba od 10. července zakáže zaměstnancům používat nástroje umělé inteligence od Anthropic pro pracovní účely a zařadí Claude Code mezi vysoce rizikový software. Místo toho mají používat vlastního asistenta Qoder.
Alibaba will ban employees from using Anthropic's artificial intelligence tools for work purposes as of July 10, citing concerns that the U.S. company has back-door security risks, CNBC confirmed on Monday.
The Chinese e-commerce giant has put Anthropic's Claude Code on a high-risk software list, according to people familiar with the matter, who asked not to be named in order to discuss internal operations.
Alibaba's move follows Anthropic's decision in June to send a letter to the U.S. Senate Committee on Banking, Housing, and Urban Affairs, blaming the Chinese tech titan of "brazenly" and "illicitly" attempting to extract its AI capabilities. Anthropic accused Alibaba of carrying out "the largest known distillation attack" on it to date.
Anthropic's terms of service dictate that Chinese companies and other "adversarial nations" are banned from using its models.
Alibaba employees are required to uninstall all Anthropic models and agent products and instead use the Chinese company's own AI assistant, Qoder, the people said.
Alibaba and Anthropic both declined to comment.
Read more CNBC tech newsMeta's push into cloud computing means Wall Street has to prepare for lower marginsChip stocks that notched record rallies in second quarter start Q3 with a dudPlayStation will end physical disc production for new games in 2028Employers who laid off workers citing AI are already starting to regret itThe ban comes amid a wave of online blowback in China against Anthropic as posts on Reddit and GitHub outlined the use of hidden code meant to detect if users might be based in the country.
The Financial Times reported Friday that Anthropic is moving to close loopholes that have allowed Chinese companies to bypass restrictions and access Claude through third countries.
The UK newspaper cited sources as saying Chinese fintech group Ant "had provided employees with corporate Claude accounts that were accessed through the company's intranet, which is connected to its Singapore-based entity."
The FT reported that TikTok parent company Bytedance "does not facilitate access to Claude," but did start a reimbursement program that allows engineers to expense personal subscriptions. The engineers can access those subscriptions on virtual private networks.
Ant and ByteDance declined to comment on the Financial Times report.
ByteDance's reimbursement policy, unveiled on April 2, is meant to encourage staffers to "experience and learn" about a wider range of AI products to enhance their skills, a person familiar with the matter told CNBC. The person asked not to be named in order to discuss internal policies.
Alibaba a dceřiná společnost Ant Group AUS Merchant Services zaplatí 600 milionů USD za vyrovnání obvinění amerického ministerstva spravedlnosti, že nezabránily nelegálním prodejům na platformách Alibaba.com a AliExpress.com. Dohoda zahrnuje i zpřísnění compliance programů.
Alibaba Group Holding and its U.S.-based payment processor, Ant Group subsidiary AUS Merchant Services, have agreed to pay $600 million to resolve U.S. Justice Department allegations that they failed to prevent illegal sales on Alibaba’s eCommerce platforms.
The Justice Department alleged that Alibaba.com and AliExpress.com failed to prevent merchants’ sales and imports of illegal pharmaceuticals, controlled substances, listed chemicals and pill presses into the United States, thereby violating the Federal Food, Drug, and Cosmetic Act (FDCA), the department said in a Wednesday (July 1) press release.
The payments are part of a non-prosecution agreement with the Justice Department, according to the release.
Reached by PYMNTS, an AUS Merchant Services spokesperson said in an emailed statement: “We are pleased to have reached an agreement with the U.S. Department of Justice to fully resolve this matter. We have made continuous improvements to our compliance program and will continue to do so to ensure compliance with laws and regulations in all markets where we operate.”
Alibaba Group Holding did not immediately reply to PYMNTS’ request for comment.
Bloomberg reported Wednesday that Alibaba said in an emailed statement that the settlement will bring “stricter compliance to the sale of products in the United States by third-party merchants on its eCommerce platforms.”
According to the Justice Department press release, Alibaba admitted that over a nearly nine-year period from January 2016 to December 2024, it maintained policies restricting the sale of prohibited products on its eCommerce platforms but failed to prevent merchants from selling prohibit products in 80,000 transactions involving imports to the U.S. that had a combined gross merchandise value of over $200 million.
Per the release, AUS admitted that over a nearly four-year period from January 2020 to December 2023, its transaction monitoring systems did not always identify transactions involving payments from high-risk jurisdictions or multiple payors on a single invoice, and its anti-money laundering compliance program failed to prevent some Alibaba merchants from using its services to facilitate the sale and importation of prohibited products.
As part of the non-prosecution agreement, Alibaba agreed to pay a criminal monetary penalty of $125 million and to forfeit $200 million, AUS agreed to pay a criminal monetary penalty of $85 million and to forfeit $190 million, and both companies agreed to enhance their compliance programs and to continue cooperating with the Justice Department.
“Companies operating online marketplaces — whether based in the United States or abroad — must implement appropriate safeguards to prevent bad actors from exploiting their platforms,” Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division said in the release. “If they fail to do so, the Department will hold them accountable.”
Alibaba zrychluje růst díky AI v e-commerce a quick commerce, jehož objednávky meziročně vzrostly 2,7×. Tržby China E-commerce Group stouply o 6 % na RMB 122 miliard.
Key Takeaways Alibaba is integrating AI across its consumer platforms to improve search, discovery and shopping experiences.BABA is investing in fulfillment efficiency and unit economics to improve the profitability of quick commerce.BABA's quick commerce orders rose 2.7 times year over year, boosting engagement across its retail ecosystem. Alibaba's (BABA - Free Report) digital commerce strategy is evolving into a more integrated, AI-enabled retail ecosystem that could support growth in fiscal 2027. Rather than relying solely on gross merchandise volume expansion, Alibaba is enhancing merchant productivity, consumer engagement and platform monetization across Taobao, Tmall and its instant commerce offerings. The company has also revamped its merchant development program by linking platform subsidies to merchants' marketing spend, an initiative aimed at improving advertising penetration and long-term monetization. These efforts are already gaining traction, with customer management revenue (CMR) increasing 8% year over year on a like-for-like basis in the March quarter, while China E-commerce Group revenues rose 6% to RMB 122 billion.
Quick commerce has become a strategic extension of Alibaba's broader retail platform rather than a standalone business. Order volume expanded 2.7 times year over year, supporting stronger growth at Freshippo and Tmall Supermarket while helping drive double-digit monthly active consumer additions for the Taobao app. At the same time, the integration of the Qwen app with Taobao, Tmall, Alipay, Amap and Fliggy is embedding AI-driven search, discovery and shopping assistance across Alibaba's consumer ecosystem, creating additional opportunities to improve user engagement and purchase frequency over time.
These investments have weighed on near-term profitability, with Alibaba China E-commerce Group's adjusted EBITA declining 40% year over year as spending on quick commerce, technology and user experience increased. However, improving fulfillment efficiency, higher average order values and stronger unit economics indicate that these investments are becoming more productive. If Alibaba continues translating higher consumer engagement into stronger merchant spending while improving the profitability of its quick commerce operations, its integrated digital commerce ecosystem could emerge as a meaningful catalyst for fiscal 2027 growth.
How Alibaba Stacks Up Against PDD and JD ?Alibaba faces intense competition from PDD Holdings (PDD - Free Report) and JD.com (JD - Free Report) , both of which continue to invest in strengthening their digital commerce ecosystems.
PDD Holdings has expanded its value-driven marketplace through AI-enabled merchant tools and Temu's international growth, while JD.com leverages its self-operated logistics network and omnichannel retail capabilities to enhance fulfillment speed and customer experience. Unlike PDD Holdings and JD.com, Alibaba operates a broader ecosystem spanning Taobao, Tmall, Taobao Instant Commerce, Ele.me, AliExpress and Alibaba.com, creating multiple consumer touchpoints across domestic and cross-border commerce. As PDD Holdings and JD.com intensify competition, Alibaba's AI-powered ecosystem, merchant monetization initiatives and integrated commerce platform could provide a differentiated long-term growth advantage.
BABA’s Share Price Performance, Valuation & EstimatesBABA shares have plunged 34.8% in the year-to-date period, underperforming the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector, which have declined 6.6% and 1.9%, respectively.
BABA’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, BABA stock is currently trading at a trailing 12-month Price/Earnings ratio of 30.23X compared with the industry’s 28.31X. BABA has a Value Score of D.
BABA’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $7.29 per share, down by a penny over the past 30 days, indicating a 87.4% year-over-year increase.
Alibaba currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Anthropic obvinila Alibaba, že se „nehorázně“ a „nezákonně“ snažila získat její schopnosti v oblasti AI. Firma tvrdí, že šlo o dosud největší známý distilační útok.
Anthropic sent a letter to the U.S. Senate Committee on Banking, Housing, and Urban Affairs accusing the Chinese tech company Alibaba of "brazenly" and "illicitly" attempting to extract its artificial intelligence capabilities, CNBC confirmed on Wednesday.
The letter, which was addressed to Sen. Tim Scott, R-S.C., and Sen. Elizabeth Warren, D-Mass., on June 10, said Alibaba carried out "the largest known distillation attack on Anthropic to date."
Distillation is an AI training method where a small, less capable model is built using outputs from an existing, stronger model.
Anthropic said operators affiliated with Alibaba and its AI lab carried out 28.8 million exchanges with its models using roughly 25,000 fraudulent accounts between April 22 and June 5, according to the letter, which was viewed by CNBC.
"We believe combating the threat of illicit distillation requires coordinated action between government and industry, and we will continue working with Congress and the Administration to maintain American AI leadership," an Anthropic spokesperson said in a statement.
A representative for Alibaba did not immediately respond to CNBC's request for comment. Bloomberg was first to report the letter.
Read more CNBC tech newsAmazon's Zoox unveils redesigned robotaxi ahead of upcoming expansionOpenAI unveils first chip as part of Broadcom deal in effort to 'build the full stack'South Korean chipmaker SK Hynix plans to raise $29 billion via Nasdaq listing as soon as July 10Alphabet added to Dow Jones Industrial Average, replacing VerizonThe letter lands two months after the White House Office of Science and Technology Policy issued a memorandum that pledged to help AI companies detect and coordinate against industrial-scale distillation. Anthropic wrote that in proceeding with its distillation attacks, Alibaba "ignored the Trump Administration's warnings."
In February, Anthropic announced that it had identified three "industrial-scale" distillation campaigns from three other AI labs: DeepSeek, Moonshot and MiniMax. The company said in a blog post at the time that the campaigns were growing in intensity and sophistication, and it encouraged collaboration across the AI industry, cloud providers and policymakers.
But in recent weeks, Anthropic's work with policymakers has been complicated.
The company said earlier this month that it received an export control directive from the Trump administration ordering the company to suspend access to its latest Claude models, Fable 5 and Mythos 5, "by any foreign national, whether inside or outside the United States, including foreign national Anthropic employees."
The government cited "national security authorities" but didn't specify its concern, Anthropic said.
Senior staffers flew to Washington, D.C., to meet with members of the Trump administration over the next several days. The company told CNBC that "both parties are working quickly to get this resolved," but hasn't yet said when it expects its models to come back online.
Alibaba spustila Qwen-Robot Suite a posouvá AI do robotiky. Cloudová divize zvýšila tržby o 40 %, ale silné výdaje srazily upravenou EBITA o 84 % a volný peněžní tok se dostal do záporu ve výši 17,3 miliardy RMB.
Key Takeaways BABA launched Qwen-Robot Suite, advancing its push into AI-driven embodied robotics.BABA cloud unit saw 40% revenue growth, with AI products posting 11th straight quarter of triple-digit gains.BABA faces profit pressure as heavy AI spending drives EBITA down and free cash flow turns negative. Alibaba Group (BABA - Free Report) shares have come under renewed pressure, slipping toward the $110 mark in mid-June trading and pulling back roughly 24.3% on a year-to-date basis even as the company doubles down on artificial intelligence and embodied robotics as its next growth frontier. BABA shares have underperformed the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector year to date.
The stock's recent slide has coincided with a stretch of mixed headlines, from added regulatory scrutiny in China to geopolitical friction abroad, even as Alibaba's underlying AI and cloud narrative has continued to strengthen.
BABA Underperforms Industry, Sector YTD
Image Source: Zacks Investment Research
Qwen-Robot Launch Builds on AI-Led Cloud MomentumThe latest catalyst is the launch of the Qwen-Robot Suite, a set of three foundation models, Qwen-RobotNav, Qwen-RobotManip and Qwen-RobotWorld, developed by Alibaba's Tongyi Lab to give machines navigation, manipulation and predictive world-modeling capabilities. According to the company's own product communications, the suite is already in pilot testing with select Alibaba Cloud enterprise clients, marking a tangible step from research into commercial deployment.
This robotics push builds directly on the AI commercialization trend disclosed in Alibaba's fourth-quarter fiscal 2026 results, where Cloud Intelligence Group external revenue growth accelerated to 40% year over year, and AI-related product revenues posted triple-digit growth for an 11th consecutive quarter, reaching roughly RMB8,971 million in the quarter. Management noted that its Qwen3.6-Plus model delivered notable gains in coding and agentic programming, while the company's Model Studio platform saw its customer base expand eightfold year over year, underscoring how the same full-stack AI infrastructure now extends into physical-world applications like robotics.
Importantly, the fiscal fourth-quarter results came with a profitability trade-off. Adjusted EBITA fell 84% year over year to RMB5,102 million as Alibaba funneled spending into cloud infrastructure, quick commerce and Qwen app user acquisition, while free cash flow swung to an outflow of RMB17,300 million.
For fiscal 2027, management guided that AI-related product revenues are expected to cross 50% of Cloud Intelligence Group's external revenues within roughly a year, model and application services annualized recurring revenues should surpass RMB10 billion in the June quarter and RMB30 billion by year-end, and that quick commerce unit economics are expected to turn positive by the end of fiscal 2027. Alibaba Cloud's gross margin is also expected to improve meaningfully over the next two to three years as AI-related workloads scale.
The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $7.38 per share, down 4.3% over 60 days despite implied 89.72% growth.
More recent company disclosures have reinforced this AI-first trajectory. In its product communications, Alibaba indicated that the Qwen-Robot models are designed to close the gap between language-based reasoning and physical control, while T-Head, its chip-design unit, has now deployed over 100,000 proprietary Zhenwu processing units on Alibaba Cloud's public platform, with more than 30 automakers and autonomous-driving companies using them for intelligent-driving development. The board also approved a fiscal 2026 annual dividend of $1.05 per ADS, signaling continued shareholder returns even amid heavy AI capital outlay.
Valuation and Competitive LandscapeBABA trades at a 2-year trailing 12-month P/E of 35.12X versus the Zacks Internet–Commerce industry's 29.96X, and carries a Value Score of C, reflecting a premium multiple relative to peers.
BABA’s Valuation
Image Source: Zacks Investment Research
Alibaba Cloud continues battling Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) and Alphabet (GOOGL - Free Report) -owned Google in AI infrastructure. Amazon's AWS remains the largest cloud provider, expanding its Connect family of AI-driven business applications. Microsoft Azure has pushed deeper AI integration through Copilot Studio and expanded agent ecosystems, growing its global traffic share meaningfully. Google Cloud has gained share through Gemini Enterprise, its TPU-based stack and an Agentic Data Cloud, with Pichai citing 40% sequential growth in paid Gemini Enterprise users. Against Amazon, Microsoft and Google's scale, Alibaba's robotics and Qwen ambitions remain comparatively nascent.
Hold Steady, Watch for a Better EntryAlibaba's robotics ambitions and accelerating AI-cloud momentum present genuine long-term catalysts, but near-term profitability pressure, regulatory headwinds and a premium valuation warrant caution. Investors may prefer holding existing positions while watching for a more attractive entry point rather than chasing shares amid current volatility. Alibaba currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alibaba žaluje americké ministerstvo obrany a chce být vyškrtnuta ze seznamu firem údajně podporujících čínskou armádu. Tvrdí, že označení nemá oporu ve faktech ani v právu.
Alibaba Group sued the U.S. Department of Defense Tuesday (June 23), seeking to be removed from a list of companies the Department says are supporters of the Chinese military.
The Department published the list earlier this month, and Alibaba argues in its lawsuit that the designation violates the company’s rights to constitutional due process and free speech, Bloomberg reported Tuesday.
Alibaba said it is neither a Chinese military company nor a military-civil fusion, and the company said that the Defense Department did not reply to evidence the company presented showing that it is not a supporter of the Chinese military, according to the report.
A company’s inclusion on the Defense Department’s list can restrict its ability to contract with the U.S. military, can limit its ability to receive research funding, and can signal more punitive trade restrictions in the future, the report said.
Alibaba got its start as an eCommerce company but has since become one of the leading artificial intelligence companies in China, per the report.
Reuters also reported on the lawsuit Tuesday and said that on June 8, the Department of Defense expanded its list of businesses linked to China’s military to include 188 entities.
Alibaba said, per the report: “The determinations have no basis in fact or law. Alibaba is governed by an independent board, none of whom has any military affiliation. Its products and services are built for retail, logistics, and enterprise information technology — not weapons, defense, or intelligence.”
The Defense Department said in a June 8 press release that it identified the 188 companies included on the list after conducting its due diligence.
“The Department will update the list with additional entities as appropriate,” it said. “The United States Government reserves the right to take additional actions on these entities under authorities other than Section 1260H.”
Section 1260H is the statutory requirement of the National Defense Authorization Act for Fiscal Year 2021 under which the Department updated the list.
In the list, the Department of Defense said Alibaba Group is indirectly affiliated with China’s State-Owned Assets Supervision and Administration Commission of the State Council (SASAC) and is affiliated with the country’s Ministry of Industry and Information Technology (MIIT), making the company a military-civil fusion contributor to China’s defense industrial base.
