BABA(HK:09988) Di Yi Cai Jing·2025-11-26 06:22Core Viewpoint - The recent performance of Hong Kong tech stocks has been puzzling, as companies like Alibaba and NIO reported better-than-expected third-quarter results, yet their stock prices declined [1][2]. Group 1: Company Performance - Alibaba's revenue for Q3 2025 increased by 4.8% year-on-year to 247.8 billion yuan, with a comparable growth of 15% after excluding asset impacts [2]. - Adjusted EBITA for Alibaba fell by 77.6% to 9.1 billion yuan, primarily due to increased investments in Taobao's flash sales, although it still exceeded some analysts' expectations [2]. - The performance of Alibaba's cloud business, which grew by 34%, and its international business was noted as strong, contributing to the overall positive outlook despite profit declines [2][3]. Group 2: Market Reactions - The decline in stock prices post-earnings reports is attributed to profit-taking by investors, despite the overall positive performance of companies like Alibaba [3]. - There is a divergence in investor sentiment regarding tech stocks, with some focusing on revenue growth while others are concerned about profit declines [2][3]. - The overall market sentiment remains optimistic due to expectations of a potential interest rate cut by the Federal Reserve, which has led to increased capital inflows into Hong Kong stocks [4][5]. Group 3: Future Outlook - Analysts suggest that despite the recent stock price declines, Alibaba and other tech stocks may maintain a long-term upward trend due to strong fundamentals [2]. - The anticipated interest rate cut by the Federal Reserve, with probabilities rising from below 40% to around 85%, is expected to positively impact market sentiment and investor risk appetite [5]. - The market is currently digesting the mixed signals from earnings reports, and a clearer direction may emerge as investors reassess their strategies [2][4].