According to a research report published by Bank of America Securities, Alibaba announced the placement of new shares in Hong Kong to raise HK$80 billion. The capital will be fully invested in full-stack artificial intelligence capabilities and infrastructure construction. After raising capital, the Group's net cash increased from about US$31 billion to over US$41 billion. The bank maintains a positive view and is optimistic about the management's strong guidance on cloud business growth, the improvement in the economic efficiency of AI investment, and the quarterly recovery of free cash flow. It sees this placement as a financing act to drive growth, diversify funding sources, and pre-strengthen the balance sheet. It maintains Alibaba's target price of 172 US stocks and the target price of HK$168 for Hong Kong stocks unchanged, maintaining a “buy” rating.

According to a research report published by Bank of America Securities, Alibaba announced the placement of new shares in Hong Kong to raise HK$80 billion. The capital will be fully invested in full-stack artificial intelligence capabilities and infrastructure construction. After raising capital, the Group's net cash increased from about US$31 billion to over US$41 billion. The bank maintains a positive view and is optimistic about the management's strong guidance on cloud business growth, the improvement in the economic efficiency of AI investment, and the quarterly recovery of free cash flow. It sees this placement as a financing act to drive growth, diversify funding sources, and pre-strengthen the balance sheet. It maintains Alibaba's target price of 172 US stocks and the target price of HK$168 for Hong Kong stocks unchanged, maintaining a “buy” rating.