美股IPO·2025-08-30 10:18Core Viewpoint - Alibaba is making significant investments in its instant e-commerce and AI sectors, leading to short-term profit erosion but aiming for long-term growth and market leadership [4][7][19] Capital Expenditure - The company reported a capital expenditure of 38 billion RMB for the quarter, a 57% increase quarter-on-quarter and a 2.2 times increase year-on-year [2][8] - A substantial investment of approximately 11 billion RMB is directed towards the instant e-commerce business, with expected losses reaching 22 billion RMB in the upcoming quarter [2][6] Impact on Profitability - The establishment of the China E-commerce Group (CEG) has resulted in a decline of 10 billion RMB in adjusted profit due to these investments [3][5] - The short-term profit erosion is a strategic choice to prioritize growth over immediate financial returns [4][19] Growth in Instant E-commerce - Instant e-commerce has shown promising initial returns, with daily order volume reaching 80 million in August, significantly narrowing the gap with market leader Meituan [10][12] - The instant e-commerce sector has positively impacted the core e-commerce business, leading to a 25% increase in monthly active buyers on the Taobao app [12][19] Future Projections - Alibaba aims for its instant e-commerce business to contribute approximately 1 trillion RMB in GMV by 2028, representing a potential 10% increase in its current e-commerce scale [17] - The management anticipates a 50% reduction in loss per order within the next two months through operational efficiency improvements [17] AI Investments - The company is also heavily investing in AI, with capital expenditures reflecting a strong belief in the future potential of this sector [8][19] - The robust demand for AI services is expected to drive accelerated growth in Alibaba Cloud's revenue [3][17] Market Sentiment - Analysts from Nomura emphasize the need for investors to assess the balance between short-term pain and long-term value in Alibaba's strategy [4][19] - The company's commitment to its strategic transformation is evident through its willingness to incur short-term losses for future growth opportunities [18][19]