Jeffray: Reiterating Alibaba's First Choice Stock for AI Investment Theme, Strong Demand for Cloud Business and AI According to a report by Golden Finance, on July 8th, Jefferies released a research report predicting that Alibaba's revenue for the first quarter ending at the end of June this year will increase by 9% year-on-year to about 270 billion yuan, with an overall EBITA of about 26 billion yuan, higher than the market expectation of 24 billion yuan. The bank predicts that due to strong demand for AI, including Model as a Service (MaaS) and overall AI related revenue growth, Alibaba Cloud Intelligence Group will be the biggest highlight of this quarter, with revenue expected to increase by 45% year-on-year, compared to the market forecast of 41% and the bank's previous expectation of 40%. The EBITA profit margin forecast for cloud business has improved to 11.5% month on month, and it is expected that AIDC will achieve a net profit of 583 million yuan (compared to the market expectation of 239 million yuan, the bank's original expectation was only to achieve a break even point). The bank maintains Alibaba's "buy" rating and confirms once again that it is the first choice stock for AI investment themes, with a target price of $185 for the US stock and HKD 179 for the Hong Kong stock unchanged.