Bernstein cuts Alibaba target to $165 after $10.2 billion equity raise, shares slide 5%
AI Market Summary
Alibaba's $10.2B equity raise to fund AI expansion is pressuring sentiment as investors weigh dilution against returns on stepped-up capex. Bernstein cut its target to $165 from $180 while keeping an Outperform view, arguing datacenter AI investments could achieve ~2.5–3 year payback. Near term, the stock may trade on confidence in capital discipline and AI infrastructure demand rather than headline cash balances.
Impact level
● Medium
Affected assets
NCSKBABA2USD/USDT-0.79%
AI Insight · NCSKBABA2USD/USDTAI Insight
● Neutral
Trade now
⚠️ AI-generated insights are based on news content and are provided for informational purposes only. They do not constitute investment advice or represent the views of BingX. Investing involves risk. Please trade responsibly.
Alibaba said it will raise $10.2 billion through an equity offering to support its AI expansion, prompting investor worries about dilution and whether the added capital spending is efficient. Bernstein analyst Robin Zhu lowered his price target to $165 from $180, a cut of about 8%, while reiterating an Outperform rating. With $30.7 billion in net cash, some investors have questioned the need for issuing new shares. Capital spending rose 75% year over year to about $10.07 billion, and the average analyst price target is $189.46, implying roughly 67.31% upside.
