$Alibaba(BABA)$ Just finish listening to the ER half an hour ago. These are my initial thoughts with a glance through the numbers:
1) it's suprisingly a positive release imo. For the first time, they're not behind peers in the industry. E-commerce top line is more or less in line or slightly outperforming & profitability somewhat maintained.
2) Cloud PaaS business is now profitable finally contributing to group margins after multi-decade subsidies. Only drawback is AI application expenses actually outpaced the margins from PaaS business. But AI application is actually growing extremely fast triple digit & crucial to the PaaS long term business. That's the whole model. I consider this development positive. In comparison, Tencent seems more vulnerable in the long term although extremely financially discipline.
I'll post once I've gained more insights. Cheers
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- Ancient One·08-20 21:50MSFT and AMZN went through the same path 6 months ago, now people regret not buying when MSFT was $350LikeReport