Alibaba long-term thesis intact after 'solid' results, says Baird
Baird analyst Colin Sebastian says the long-term thesis on Alibaba Group shares is intact after the company this morning reported "solid" results despite macro pressures. Alibaba posted a slight sales miss with a profitability beat, as core commerce margins offset elevated investments in local services, Lazada, and New Retail, Sebastian tells investors in a post-earnings research note. The analyst finds it important that management suggested only a limited impact from China macro issues on Alibaba's core verticals. Further, a more constructive government policy in the form of higher VAT exemption thresholds should provide additional support to merchants, Sebastian contends. He keeps an Outperform rating on Alibaba shares with a $178 price target. The stock in midday trading is up 4%, or $7.02, to $163.90.