Alibaba Group (NYSE:BABA) remains one of the top long-term e-commerce and cloud stocks, according to Jefferies, which reiterated its Buy rating on July 9.
The firm cited strong cloud growth fueled by rising enterprise AI demand, expecting Alibaba’s Cloud Intelligence Group to report a 23% year-over-year revenue increase, beating earlier projections.
Alibaba’s instant commerce platforms, including Taobao and Eleme, also hit a new record of 80 million daily orders, reflecting strong operational momentum in the fast-delivery segment.
However, Jefferies warned of margin pressures due to heavy investments, forecasting a 15% drop in total EBITA and a 20% decline for Taobao Tmall Group EBITA in the short term.
Still, the firm maintains a positive outlook for Alibaba’s medium-term growth, believing strategic spending on cloud services and instant commerce will drive long-term expansion.
Alibaba continues to focus on building out its AI-driven cloud ecosystem, positioning itself to capitalize on trends like AI deployment and digital commerce transformation.