BABA changes
Pick any two versions below to diff them.
- Price
- $109.26 → $111.37(+1.9%)
- Next earnings
- Nov 20, 2026 → Nov 24, 2026
- Balance sheet
- added: Cash: CN¥474.5B Debt: CN¥266.5B Net cash: CN¥208.0B Interest cover: 6.0× Ratings: Moody's A1 (stable outlook), S&P A+ (stable outlook) Alibaba has a large net cash removed: position. At June 30, 2026, it held cash added: position, and removed: other liquid investments added: the pressure is cash flow, not debt. Capital spending of RMB removed: 474.5 billion, against debt added: 67.7 billion in the June 2026 quarter, mostly for AI infrastructure, gave a free cash outflow of removed: about RMB removed: 266.5 added: 44.7 billion. removed: Thus net cash was about RMB 208 billion, and added: Cash includes other liquid investments. At June 30, 2026, shareholders' equity was RMB 1,049 billion. The debt is unsecured and sits mostly at the Cayman Islands parent. It is RMB 115.7 billion of senior notes, RMB 54.9 billion of convertible senior notes and RMB 9.3 billion of exchangeable bonds. There is also RMB 86.6 billion of bank borrowings, and RMB 30.6 billion of these is due within one year. Interest removed: is a small burden. In the June 2026 quarter, added: cover uses income from operations removed: of RMB 15.2 billion covered interest expense of RMB 2.35 billion about 6 times. added: in the June 2026 quarter. Adjusted EBITDA of RMB 39.1 billion covered removed: it added: interest about 17 times. removed: The pressure is cash flow, not debt. Capital spending of RMB 67.7 billion in the quarter, mostly for AI infrastructure, gave a free cash outflow of RMB 44.7 billion. In August 2026, Alibaba sold 710 million new shares for HK$80 billion to fund AI computing and data centers, and did not borrow more. Subsidiaries and VIEs in Mainland China earn most of the cash. Money that leaves China is subject to currency controls. Thus the parent's cash for dividends, buybacks and offshore debt depends on what it can move out. Moody's removed: rates Alibaba A1 (outlook changed added: its outlook to stable in April removed: 2026), and S&P rates it A+ (stable). added: 2026. The balance sheet can carry the AI spending for some time. But continued cash outflows have started to use the net cash, and new share issues dilute shareholders. As of Jun 30, 2026.
- Checkpoints
- Aug 26, 2026: HK$80 billion share placement for AI completes. Passed. Watch: Completion at the agreed price with proceeds used for AI infrastructure passes; a failed or repriced placement fails. Outcome: Alibaba completed the placement of 710 million new shares at HK$112.70 on August 26, 2026. Nov removed: 20, added: 24, 2026 (estimate): Fiscal Q2 2027 results: Cloud growth against capital spending. Pending. Watch: Alibaba Cloud external revenue growth above 45% and rising AI revenue with a smaller free cash outflow pass; slower Cloud growth or a larger outflow without revenue gains fails. Feb 2027 (estimate): Fiscal Q3 2027 results: margins and quick-commerce losses. Pending. Watch: Higher adjusted EBITA from smaller delivery subsidies and continued Cloud growth pass; falling profit again fails.