Will Alibaba’s (BABA) Q2 Earnings Gain From Cloud Strength?
Alibaba Group Holding Limited’s BABA second-quarter fiscal 2024 results, scheduled for release on Nov 16, are expected to reveal the impacts of the surging cloud computing segment. The cloud segment has proven to be a major top-line growth generator for the company in the recent past. In the previous quarter, the cloud computing segment’s revenues surged 4% year over year to RMB 25.12 billion ($3.5 billion), making up 10.7% of the total revenues.
Alibaba’s bottom line has been severely affected by the company’s strong cloud services portfolio, laced with advanced technologies like AI, generative AI, Machine Learning, and the Internet of Things, and these are anticipated to have driven its customer momentum.
This reported period is also not all gloom given the company’s strong momentum across the Asia Pacific region, and its expanding cloud computing business in both China and international markets.
Currently, Alibaba holds a Zacks Rank #3 (Hold). Better-ranked stocks in the broader technology sector include Badger Meter (BMI), Arista Networks (ANET) and Salesforce (CRM). Badger Meter boasts a Zacks Rank #1 (Strong Buy), while Arista Networks and Salesforce each carry a Zacks Rank #2 (Buy). These stocks have shown impressive momentum in the year-to-date period.
Stay tuned to learn how Alibaba’s Q2 earnings fare in the face of strengthening cloud dominance. To read more on this, visit Zacks.com.