Alibaba announced its fourth-quarter and annual results on Thursday (Feb. 20), facing significant challenges after a surge in market value of over US$110 billion due to DeepSeek.
Ahead of the earnings report, Alibaba's stock fell nearly 2%, currently at HK$121.7. Analysts predict that strong AI demand could accelerate Alibaba Cloud's revenue growth to double digits, up from 7% last quarter.
Shares have risen nearly 60% since January, fueled by new AI models, Jack Ma's recent public appearances, and collaboration with Apple. Options traders expect a more volatile market reaction to the earnings.
HSBC analyst Charlene Liu emphasized the need to focus on fundamentals, including stabilizing e-commerce market share and a clear AI monetization strategy.
Recently, Alibaba's AI To C division launched a recruitment drive for hundreds of positions, with a significant focus on AI development. Additionally, the Tmall Genie hardware business will now be managed by Wu Jia, emphasizing the integration of AI capabilities.
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