Benzinga·2026-03-20 14:12Core Viewpoint - Alibaba Group Holding Ltd. reported weak fiscal third-quarter results, with revenue and earnings falling short of analyst expectations [1][2]. Financial Performance - Quarterly revenue was $40.73 billion, a 2% year-over-year increase, but below the analyst consensus estimate of $41.26 billion [1]. - On a like-for-like basis, excluding revenue from divested businesses, revenue growth would have been 9% year-over-year [1]. - Adjusted earnings per American Depositary Share (ADS) were $1.01, missing the consensus estimate of $1.73 [1]. Strategic Focus - CEO Eddie Wu emphasized continued heavy investment in AI and consumer businesses, identifying AI as a key long-term growth driver [2]. - Cloud Intelligence revenue increased by 36%, with AI-related products achieving triple-digit growth for the tenth consecutive quarter [2]. - The Model-as-a-Service platform is recognized as a new growth engine for the company [2]. Analyst Reactions - Following the earnings announcement, analysts adjusted their price targets for Alibaba stock [3]. - Baird analyst Colin Sebastian maintained an Outperform rating, lowering the price target from $174 to $164 [4]. - Barclays analyst Jiong Shao kept an Overweight rating, reducing the price target from $195 to $190 [4]. - Mizuho analyst Jason Helfstein also maintained an Outperform rating, cutting the price target from $195 to $190 [4].