Alibaba Group secured a temporary U.S. legal reprieve from Pentagon-related lobbying restrictions, preserving its ability to engage U.S. policymakers as it accelerates AI-driven growth in its cloud business.
Simply Wall St said in its analysis that over the past week Alibaba reported narrowing instant‑commerce losses, faster AI‑driven cloud growth and an active buyback authorisation of up to about 10% of shares, moves that could modestly support earnings per share while the company pivots capital toward AI and cloud.
The report adds that Alibaba has tightened its AI and data‑security posture by banning Anthropic tools, emphasising in‑house platforms and adapting to evolving Chinese AI rules, while analysts model divergent outcomes including a base case of CN¥1,404.8 billion revenue and CN¥177.2 billion earnings by 2029 and a more optimistic case of about CN¥1,455.7 billion revenue and CN¥219.7 billion earnings by 2028.
Meeting the base projection requires 11.1% annual revenue growth and roughly CN¥71.3 billion of earnings expansion from CN¥105.9 billion today, a concrete target investors can use to judge whether the temporary U.S. reprieve materially alters the risk profile of Alibaba's AI‑and‑cloud investment programme.
