Alibaba (NYSE:BABA) released earnings this week after the stock price cooled.
BABA – Weekly Chart
The price of BABA has a key support level at $148.71 on the ADR. The earnings release could define the next path for the stock. If support doesn’t hold, a move toward $116 is possible.
Alibaba will report quarterly earnings on 18 February, with investors looking to cloud revenue, AI profits and e-commerce performance.
The upcoming event will be an important update on how the Chinese e-commerce and cloud giant has been navigating a tough operating environment marked by slowing retail growth, large strategic investments and accelerating adoption of cloud and AI.
The company is expected to report higher revenue but lower pre-tax profit and earnings per share than its Q3 2025 results. Revenue of RMB 290.98 billion would be up almost 4% from RMB 280.15 billion. Earnings per share are projected to be down around 44% compared to a year ago
Alibaba shares are up 30% over the last six months, but that includes a drop of around 10% in the last month as appetite cooled from tech investors across a wide range of sectors.
Investors will be looking for increased signs that Alibaba’s revenue mix is tilting towards higher-growth segments, even if profit margins remain under pressure from capex spending.
In the 2026 earnings call, Alibaba highlighted a 34% increase in cloud revenue and stronger customer adoption, while AI products maintained triple-digit growth and quick commerce revenue jumped.
However, those large investments in cloud infrastructure and quick commerce dragged on profit margins and free cash flow. That will be a key focus of the upcoming earnings release. Analysts will also look for evidence that Alibaba’s competitive power against rivals such as JD.com and PDD Holdings is holding up in domestic and international markets.
LSEG data shows that analysts have an average upside target of 19% on BABA shares.
