Morgan Stanley lowered its price target on Alibaba (BABA) to $180, down from $200. The bank cited a deteriorating outlook for the company’s core e-commerce operations. This revision stems from weak consumption and intense market competition.
Despite the PT reduction, Morgan Stanley analysts reiterated an 'Overweight' rating. They noted that Alibaba Cloud continues to reinforce its position as a top AI enabler in China. Cloud revenue growth is expected to accelerate.
Separately, reports indicate Alibaba plans to increase investment in its Taobao Instant Commerce division. This strategic move aims to expand the company's market share within the instant retail sector.
To compete in the growing market, Alibaba will prioritize merchant and user subsidies. The company plans to favor these subsidies over short-term profitability for the next two years.