Core Viewpoint - Alibaba's stock price increased by over 4%, driven by optimistic forecasts regarding its cloud business growth, capital expenditure expansion, and internationalization strategy [1] Group 1: Financial Performance - As of the report, Alibaba's stock rose 4.14% to HKD 173.4, with a trading volume of HKD 16.784 billion [1] - Morgan Stanley raised its capital expenditure forecast for Alibaba from RMB 100 billion to RMB 108 billion to a new range of RMB 130 billion to RMB 135 billion for the fiscal years 2026 to 2028 [1] Group 2: Cloud Business Outlook - Morgan Stanley expressed increasing optimism about Alibaba Cloud's prospects following the Cloud Summit, expecting the addition of 10 to 15 GW of data center capacity by 2032 [1] - The firm adjusted its growth forecast for Alibaba's cloud business from 30% to 32% for fiscal year 2026 and from 30% to 40% for fiscal year 2027 [1] Group 3: Strategic Developments - Alibaba's management highlighted robust demand, with tokens doubling every 2 to 3 months, and announced several new initiatives during the conference [1] - Key announcements included the launch of the flagship model Qwen3-Max, an upgrade to the Bailian Agent intelligent platform, and a strategic partnership with NVIDIA in the field of physical AI [1] - Alibaba is accelerating its international expansion by establishing data centers in Brazil, France, and the Netherlands for the first time [1]

Core Viewpoint - Wells Fargo upgraded Amazon's rating from "Hold" to "Outperform" due to increased capacity from the Rainier project and improved confidence in AWS revenue growth acceleration in 2026 [1] Group 1: AWS Revenue Projections - The Rainier project, located in Indiana, is expected to generate approximately $14 billion in annual revenue for AWS when fully operational at 2.2GW [1] - Wells Fargo raised its 2026 AWS revenue forecast by 3% and its 2027 forecast by 7% [1] - The firm predicts a 22% year-over-year growth for AWS in 2026, compared to the market's expectation of 18% [1] Group 2: Profit Margin Expectations - Gawrelski anticipates a mild impact of about 50 basis points on the profit margin for 2026 due to the Rainier project [2] - Despite the revenue increase, profit margins are expected to face pressure in 2027, while the market generally expects margins to stabilize at 34.3% in 2026 [2] - As of the latest market close, Amazon's stock fell by 0.23% to $220.21, remaining roughly flat year-to-date [2]