Alibaba: Expecting Strong Earnings Growth In Q2, Cloud Margin Continues To Improve
Bubble signal: 0 · NeutralRelevance 55CapexChina
Source: NewsData: AI bubble (EN) · Published 2026-09-18
Summary
Alibaba stock was upgraded to Strong Buy after a 16% drop, trading at a forward P/E of 16.5x. Its AI cloud business grew 45% year-over-year while the company continues heavy AI capital expenditure.
Bubble analysis
This is indirect evidence on the bubble question: Alibaba's AI cloud revenue growing 45% year-over-year shows real revenue backing AI compute demand, which partly counters the 'all spending, no return' bubble thesis. But the company is also keeping AI capex heavy, so the race between spending and returns remains the key issue. With no hard dollar figures, its value is limited.
#capex#alibaba#china-ai#cloud
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