Overview

• Hong Kong-listed shares rose 2.4% to HK$140.60 after Alibaba unveiled Qwen-3-Max-Preview, a text-only model exceeding 1 trillion parameters.
• Fiscal first-quarter FY26 cloud revenue climbed 26% year over year to RMB 33.4 billion, with management signaling further acceleration.
• AI-related sales now represent about 20% of external cloud revenue after eight consecutive quarters of triple-digit growth.
• Barclays raised its price target to $190 with an overweight rating, and Benchmark lifted its target to $195 with a buy, both citing cloud and AI momentum.
• Heavy spending on instant commerce is compressing margins—roughly RMB 10 billion in F1Q26 and about RMB 50 billion expected for FY26—though analysts view the push as ultimately accretive.