0614 GMT - Alibaba is likely to keep up its artificial-intelligence investment in the long term, according to Citi analysts in a research note. Citi believes Alibaba's management has "confidently articulated" its decision to aggressively increase investment to capture the significant demand in AI. Management views it as a controlled cash-flow trade-off although the asset-heavy AI investment is front-loaded and will weigh on short-term profitability, they say. Citi trims the target price for its ADRs to $189.00 from $190.00. The bank keeps its buy rating on the stock and views Alibaba as a prominent AI play in China. Its ADRs last traded at $130.53.
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