The Motley Fool·2026-02-14 01:33Core Viewpoint - Alibaba Group's stock has shown significant recovery, but upcoming earnings report raises questions about sustaining momentum [1][2] Financial Performance - Alibaba's earnings have been inconsistent, missing estimates in three of the last four quarters, with the last beat occurring in the December quarter of the previous year [4] - In the first half of fiscal 2025, cloud revenue increased by 30% year over year, while e-commerce segments grew by 12% and 14% respectively; overall revenue rose by just 3% to nearly $70 billion [8] - The stock currently trades at a P/E ratio of 22, lower than Amazon's 28 and Sea Limited's 47, but higher than its P/E of 12 from last summer [9] Stock Performance - Alibaba's stock has rallied approximately 45% over the past year, with most gains occurring between late August and early October [5] - Current stock price is $155.68, with a market cap of $357 billion [6] Investor Sentiment - Investors are advised to be cautious about adding shares before the earnings report due to the company's mixed financial performance and history of earnings misses [10][11] - Despite improved outlook and double-digit growth in key segments, geopolitical concerns still linger, making competitors like Amazon potentially more attractive [11]