Keys to Alibaba's (BABA) Quarter - RBC Capital

RBC Capital analyst Mark Mahaney reiterated an Outperform rating and $210.00 price target on Alibaba (NYSE: BABA) based on intra-quarter data points that indicate expectations for 2Q:20 are reasonable. 2Q20 results are expected on November 1st BMO and the analyst is modeling revenue of 116.4B RMB, slightly below consensus of 117.0B RMB. Adjusted EPS is expected to be 10.66 RMB, again, just below consensus at 10.75 RMB.

The analyst is expecting the street to be focused on 4 key things:

1) Core Commerce Revenue of ~99.5B RMB representing 86% of Total Revenue

2) Core Commerce – Adjusted EBITA consistently growing at +27% Y/Y, in line with from June’s +27% Y/Y growth

3)Long Term Strategic Investment EBITA Losses narrowing

4) Cloud Computing Revenue, while still small at ~7% of revenue but representing a potentially very large $30-$40B market opportunity for Alibaba.

For an analyst ratings summary and ratings history on Alibaba click here. For more ratings news on Alibaba click here.

Shares of Alibaba closed at $176.59 yesterday.

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