The Zhitong Finance App learned that Macquarie released a research report saying that it downgraded the Alibaba-SW (09988) rating to “neutral”, mainly because it saw that the company was trying to achieve balanced development in defense and expansion, but that it may limit the current profit margin. In addition, management acknowledged that it will increase investment this year to maintain its leading position. Among them, mainland and overseas e-commerce and cloud businesses will be prioritized, and the target price will be reduced by 4% to HK$84.2. Based on Ali's more aggressive investment, the adjusted profit forecast for the end of March 2024-25 was lowered by 1%. The latest forecast is that the adjusted profit for the 2024 fiscal year will be 172.9 billion yuan, up about 22% year on year, and the forecast for the 2025 fiscal year will drop to 166 billion yuan.