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Yahoo
6 days ago
- Business
- Yahoo
Jefferies maintains Buy on Alibaba shares, cites strong AI-driven cloud growth
-- Jefferies reiterated its Buy rating on Alibaba (NYSE:BABA) shares on Wednesday, highlighting accelerating cloud revenue growth and record momentum in instant commerce operations as key catalysts. Looking ahead to Alibaba's June-quarter results, Jefferies wrote: 'Accelerating Cloud revenue growth is expected due to solid AI demand,' estimating Cloud Intelligent Group revenue growth of 23% year over year, ahead of both its prior 20% forecast and market consensus. The firm noted this momentum is being driven by rising enterprise demand for artificial intelligence applications. Jefferies also pointed to record highs in daily order volume for Alibaba's instant commerce platforms, writing: 'Taobao Instant Commerce and Eleme announced that their combined daily order volume exceeded 80 million on 5 July,' including more than 13 million non-meal orders. The firm noted that the milestone follows a previous record of 60 million orders on June 23, underscoring what Jefferies called 'solid momentum… across segments.' However, the firm also flagged pressure on margins due to spending on growth, estimating overall EBITA to decline 15% year over year to about RMB38 billion, with a margin of 15%, below consensus expectations of 18%. For the Taobao Tmall Group segment, which now integrates local services Eleme and OTA Figgy, Jefferies expects a 20% decline in EBITA, citing investment in instant commerce. Still, the firm remains upbeat on the medium-term trajectory. 'We believe the market has formed expectations on investment in instant commerce,' Jefferies wrote, adding that CMR is set to outpace GMV growth, thanks to contributions from QZT and service fees. Jefferies expects Alibaba to update investors on AI cloud growth, user engagement, and competitive positioning during its upcoming earnings call. Related articles Jefferies maintains Buy on Alibaba shares, cites strong AI-driven cloud growth JP Morgan upgrades Bloom Energy on restored fuel cell tax credit Apple should acquire Perplexity AI to boost AI strategy, says Wedbush Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
South China Morning Post
07-07-2025
- Business
- South China Morning Post
Taobao's daily on-demand orders soar as China's instant e-commerce war heats up
The Taobao figures were released a day after rival Meituan reported record orders for its instant delivery service Alibaba Group Holding is seeing a rapid acceleration in the volume of on-demand delivery transactions, the latest sign of growing rivalry with Meituan and in China's instant e-commerce market. Combined daily orders on Taobao Instant Commerce – the company's latest push into on-demand delivery – and food delivery app reached 80 million, Taobao said on its official WeChat account on Monday. Daily active users on Taobao Instant Commerce surpassed 200 million. Alibaba owns the South China Morning Post. The figures were released a day after Meituan, Alibaba's bigger rival in the on-demand delivery sector, announced it had achieved record orders for its instant delivery service. On Saturday, Meituan said daily transaction volume covering food and retail goods had reached an all-time high of 120 million, briefly crashing its servers in certain areas. The Alibaba figures reflect the rapid progress achieved by Taobao Instant Commerce, which was launched in late April as the company's answer to Meituan's Instashopping and food delivery service. The service reached 10 million daily orders within its first week and 40 million within the first month. A group of Meituan food delivery couriers wait for new orders on March 22, 2025 in Chongqing, China. Transaction volumes have accelerated over the past few weeks as e-commerce players started to offer more discounts and subsidies to boost consumption during the peak summer season. It took the platform nearly a month to grow daily orders from 40 million to 60 million, but just 12 days to gain another 20 million. Alibaba, which is seeking new growth beyond its traditional e-commerce business, has been betting big on on-demand delivery. It just announced a consumer and merchant subsidy programme totalling 50 billion yuan (US$7 billion) that will run over the next 12 months. Newsletter Saturday China Future Tech By submitting, you consent to receiving marketing emails from SCMP. If you don't want these, tick here {{message}} Thanks for signing up for our newsletter! Please check your email to confirm your subscription. Follow us on Facebook to get our latest news. Last month, it announced the merger of and its online travel agency Fliggy into its core e-commerce operations, describing the move as a 'strategic upgrade from an e-commerce platform to a comprehensive consumer platform'. 'Synergies between food delivery, instant commerce and traditional commerce are [the] next focus,' Jefferies analysts said in a research note on Sunday about Alibaba's latest order figures. Alibaba reiterated that its strategy was to avoid 'involution', referring to increasingly intense competition that leads to diminishing returns, a phenomenon seen across various parts of Chinese society in recent years, raising concerns from the central government. The rapid growth of Taobao Instant Commerce has elevated the market size of China's instant delivery sector, boosting the total daily order volume across different platforms from around 100 million in May to 200 million, Alibaba said.
South China Morning Post
07-07-2025
- Business
- South China Morning Post
Taobao's daily on-demand orders soar as China's instant e-commerce war heats up
Alibaba Group Holding is seeing a rapid acceleration in the volume of on-demand delivery transactions, the latest sign of growing rivalry with Meituan and in China's instant e-commerce market. Combined daily orders on Taobao Instant Commerce – the company's latest push into on-demand delivery – and food delivery app reached 80 million, Taobao said on its official WeChat account on Monday. Daily active users on Taobao Instant Commerce surpassed 200 million. Alibaba owns the South China Morning Post. The figures were released a day after Meituan, Alibaba's bigger rival in the on-demand delivery sector, announced it had achieved record orders for its instant delivery service. On Saturday, Meituan said daily transaction volume covering food and retail goods had reached an all-time high of 120 million, briefly crashing its servers in certain areas. The Alibaba figures reflect the rapid progress achieved by Taobao Instant Commerce, which was launched in late April as the company's answer to Meituan's Instashopping and food delivery service. The service reached 10 million daily orders within its first week and 40 million within the first month. A group of Meituan food delivery couriers wait for new orders on March 22, 2025 in Chongqing, China. Transaction volumes have accelerated over the past few weeks as e-commerce players started to offer more discounts and subsidies to boost consumption during the peak summer season. It took the platform nearly a month to grow daily orders from 40 million to 60 million, but just 12 days to gain another 20 million.
Malay Mail
06-07-2025
- Business
- Malay Mail
Meituan hits record 120 million daily orders on July 5 amid China's instant delivery price war
SHANGHAI, July 6 — Chinese delivery giant Meituan said its on-demand delivery business hit a record high over the weekend, with more than 120 million orders placed in a single day — the highest volume since its founding in 2010. South China Morning Post (SCMP) reported that food deliveries made up the bulk of yesterday's transactions, with 100 million orders or 83 per cent of the total. It added that the surge briefly overwhelmed Meituan's servers, causing temporary outages in some areas, the company said in a statement. Services resumed within hours after emergency safeguards were triggered. The spike in volume comes as China's e-commerce giants, including Alibaba and intensify efforts to carve out a bigger slice of the instant delivery market — a sector Meituan has long dominated. The scramble to lure shoppers has sparked a fresh round of aggressive price cuts and subsidies, as the platforms vie for consumer attention in a sluggish economy. SCMP also reported that Alibaba, which recently launched Taobao Instant Commerce, announced a one-year subsidy plan worth 50 billion yuan (RM30 billion) to fuel growth. Its platform has already hit 60 million daily orders as of late June, with fulfilment handled by food delivery arm Meanwhile, which entered the food delivery space in February, told SCMP its platform hit 25 million daily orders by June 18. Meituan, which controls about 70 per cent of China's food delivery market, has responded with deep discounts — including coffee deals as low as 2 yuan — to hold its lead. The company's financials remain strong: it posted an 18 per cent rise in first-quarter revenue to 86.6 billion yuan, while net profit jumped 87.3 per cent to 10 billion yuan. For 2023, Meituan reported 22 per cent revenue growth to 337.6 billion yuan, and a 158 per cent leap in earnings to 35.8 billion yuan. Surging demand briefly crashes platform as Alibaba and challenge Meituan's dominance
Yahoo
30-06-2025
- Business
- Yahoo
Jefferies trims China tech targets but stays positive on Alibaba, Meituan and JD
-- Jefferies cut its price targets for Alibaba (NYSE:BABA), Meituan and but maintained Buy ratings, saying the companies remain well positioned despite rising spending on food delivery and other services. The broker said Chinese internet firms are racing to build one-stop apps offering shopping, travel, food and entertainment. It sees entertainment platforms as the most defensive segment heading into the second half, with online travel and ecommerce players also expected to benefit from steady demand. Jefferies lowered its price target on Alibaba, to $153 from $156, citing increased investment in food delivery and logistics. The firm said Alibaba's on-demand services, including Eleme and Taobao Instant Commerce, handled over 60 million daily orders in late June, nearly double from a year earlier, and could help drive user growth and engagement. Meituan, which Jefferies said handled over 100 million customers during China's mid-year shopping festival, was also kept at Buy. Its price target was reduced to HK$165 from HK$185 due to higher investment in its grocery and 30-minute delivery businesses. was described as making early gains in food delivery, helping draw more young and female users to its app. But Jefferies warned that the business remains in its early stages and may pressure near-term earnings. The price target was cut to $60 from $66. In online travel, Jefferies said remains the clear leader, helped by its focus on mid-to-high-end hotels and bundled services. It expects new competition from JD to be limited. The broker also highlighted Kuaishou and Bilibili (NASDAQ:BILI) as standouts in entertainment, calling the segment its top pick for the second half thanks to steady ad revenue and lower exposure to macro headwinds. Related articles Jefferies trims China tech targets but stays positive on Alibaba, Meituan and JD As stocks notch records, sentiment lags behind, but 'Fed put' to support bulls Elon Musk criticizes spending bill, calls for new political party Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
