BABA-W rose 5% in Hong Kong, trading at 110.3 HKD/share with turnover of 4.939 billion HKD, extending the prior session's surge of over 12%.
The continued strength is driven by multiple catalysts. A Q1 FY2027 earnings preview indicated Alibaba Cloud revenue growth accelerating to approximately 45%, significantly above prior consensus of 40%, powered by robust AI demand. Meanwhile, the instant retail business Taobao Flash Delivery reported losses narrowing faster than expected while maintaining stable market share.
On the analyst front, CICC maintained an Outperform rating with a 172 HKD target price, forecasting non-GAAP net income above consensus. Zhongtai Securities initiated coverage with a Buy rating, citing cloud plus AI as opening new growth avenues. Additionally, reports emerged that Chinese officials have signaled Alibaba may soon be permitted to procure certain Nvidia H200 chips, providing critical AI computing support. The company also disclosed a share repurchase of approximately 4.08 million shares on July 7, totaling roughly 50 million USD.