Alibaba: Pullback Sets Up Compelling Long-Term Opportunity (Rating Upgrade)

Core Insights - Alibaba reported its March quarter results with revenue and EBITDA falling short of consensus expectations due to several factors including negative impact from Cainiao logistics, cloud revenue being largely in-line but below buyside expectations, and a deceleration in AIDC [1] Group 1: Financial Performance - Revenue and EBITDA for Alibaba were below consensus estimates [1] - The shortfall was attributed to negative delta from Cainiao logistics and lower-than-expected growth in cloud revenue [1] - AIDC experienced a deceleration, contributing to the overall underperformance [1] Group 2: Market Context - The report highlights the challenges faced by Alibaba in the current market environment, particularly in logistics and cloud services [1] - The performance indicates a need for Alibaba to address operational inefficiencies and enhance growth strategies in its logistics and cloud segments [1]