Alibaba is scheduled to report fiscal third-quarter 2026 results. Wall Street expects the company to post revenues of approximately $42.0 billion. Analysts project earnings per share of $1.68.
Investor focus remains on the growth trajectory of Alibaba's cloud and AI segments. These divisions have served as primary drivers for the company's recent stock performance.
Erste Group downgraded the stock from Buy to Hold on the day of the expected release. The firm cited declining operating margins and rising liabilities linked to heavy spending on technology and AI infrastructure.
Erste Group is now the only firm with a non-Buy rating on Alibaba. The downgrade highlights increasing scrutiny regarding the capital requirements of the company's AI ambitions.