Daiwa analysts said Alibaba’s long-term outlook remains promising despite
weaker-than-expected Q3 profitability. They are cautious on overall
profitability but constructive on Alibaba Cloud’s medium-term AI monetization,
highlighting the new Token Hub unit as a core engine for scalable token-based
consumption. Food delivery losses stayed high in the December quarter but are
expected to narrow next quarter. Daiwa maintains a buy rating but lowers the
target price to HK$184 from HK$191.
