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Will Cloud Strength Benefit Alibaba's (BABA) Q3 Earnings?
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Alibaba Group Holding Limited’s (BABA - Free Report) third-quarter fiscal 2023 results, slated for release on Feb 23, are expected to reflect the impacts of the strengthening cloud computing segment.
Moreover, the segment has turned out to be one of the key contributors to the company’s overall top line growth. In the last reported quarter, revenues from the cloud computing segment increased 4% from the prior-year period to RMB 20.8 billion ($2.9 billion), accounting for 10% of the total revenues.
Click here to know how the company’s overall fiscal third-quarter results are expected to be.
Factors to Note
Increasing spending from enterprise customers, driven by Alibaba’s continued efforts to add features to its cloud offerings, is likely to have driven the segment’s top line growth in the fiscal third quarter.
Notably, Alibaba’s strong cloud services portfolio, powered by advanced technologies like AI, Machine Learning and the Internet of Things, is expected to have aided it in addressing the rising demand for cloud architecture.
Moreover, the company has been taking strong initiatives toward making its key cloud products serverless in order to prevent customers from worrying about managing servers and infrastructure during the process of product development and deployment. These initiatives are expected to have driven Alibaba Cloud’s customer momentum in the quarter under review.
Further, Alibaba’s expanding footprint in the booming cloud market is expected to have been encouraging.
The company’s cloud computing business has been gaining a lot of traction in China, as well as in other international regions. Its strengthening global data center network is anticipated to have been beneficial in the to-be-reported quarter.
The company has been witnessing solid momentum across the Asia Pacific region for the past few quarters. The trend is expected to have persisted in the quarter under review.
Additionally, the company's Hybrid Cloud Partner Program, which has been gaining strong traction, is expected to be reflected in the upcoming results.
Image: Bigstock
Will Cloud Strength Benefit Alibaba's (BABA) Q3 Earnings?
Alibaba Group Holding Limited’s (BABA - Free Report) third-quarter fiscal 2023 results, slated for release on Feb 23, are expected to reflect the impacts of the strengthening cloud computing segment.
Moreover, the segment has turned out to be one of the key contributors to the company’s overall top line growth. In the last reported quarter, revenues from the cloud computing segment increased 4% from the prior-year period to RMB 20.8 billion ($2.9 billion), accounting for 10% of the total revenues.
Click here to know how the company’s overall fiscal third-quarter results are expected to be.
Factors to Note
Increasing spending from enterprise customers, driven by Alibaba’s continued efforts to add features to its cloud offerings, is likely to have driven the segment’s top line growth in the fiscal third quarter.
Notably, Alibaba’s strong cloud services portfolio, powered by advanced technologies like AI, Machine Learning and the Internet of Things, is expected to have aided it in addressing the rising demand for cloud architecture.
Moreover, the company has been taking strong initiatives toward making its key cloud products serverless in order to prevent customers from worrying about managing servers and infrastructure during the process of product development and deployment. These initiatives are expected to have driven Alibaba Cloud’s customer momentum in the quarter under review.
Further, Alibaba’s expanding footprint in the booming cloud market is expected to have been encouraging.
Alibaba Group Holding Limited Price and Consensus
Alibaba Group Holding Limited price-consensus-chart | Alibaba Group Holding Limited Quote
The company’s cloud computing business has been gaining a lot of traction in China, as well as in other international regions. Its strengthening global data center network is anticipated to have been beneficial in the to-be-reported quarter.
The company has been witnessing solid momentum across the Asia Pacific region for the past few quarters. The trend is expected to have persisted in the quarter under review.
Additionally, the company's Hybrid Cloud Partner Program, which has been gaining strong traction, is expected to be reflected in the upcoming results.
Zacks Rank & Stocks to Consider
Currently, Alibaba carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer & Technology sector are Arista Networks (ANET - Free Report) , Agilent Technologies (A - Free Report) and Baidu (BIDU - Free Report) . While Arista Networks sports a Zacks Rank #1 (Strong Buy), Agilent Technologies and Baidu carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has gained 6.1% in the past year. The long-term earnings growth rate for ANET is currently projected at 17.5%.
Agilent has gained 8.4% in the past year. A’s long-term earnings growth rate is currently projected at 10%.
Baidu has lost 7.1% in the past year. The long-term earnings growth rate for BIDU is currently projected at 19.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.