Nomura keeps buy on Alibaba $178 target, expects EBITA beat
Nomura is still backing Alibaba, keeping its "Buy" rating and setting a $178 target price.
Even as China's economy faces headwinds, Alibaba is pushing ahead with growth in its cloud business and new AI investments.
While some revenue from its main e-commerce platform might dip, Nomura expects the company's profits (EBITA) to actually beat what most analysts predicted.
Alibaba balances AI and cash flow
Alibaba's cloud segment is on track for 53% year-over-year growth, better than expected.
Traditional e-commerce remains solid, bringing in 49 billion yuan in profits.
Quick commerce (think super-fast deliveries) has cut its losses sharply compared to last year.
Overall, Alibaba's focus right now is balancing smart investments in AI while keeping cash flow healthy, showing it's serious about long-term growth even when things get tricky.