Next week on the stock market

Alibaba’s profit under pressure

Alibaba’s third-quarter results are expected to show a continuing trend of top-line improvements and a shrinking bottom line as the Chinese conglomerate spends heavily on cloud computing and on-demand delivery services.

Analysts are forecasting an acceleration in cloud intelligence growth to 33%, reflecting high levels of investment and a pivot to AI-related products, which have shown triple-digit growth for nine consecutive quarters. This part of the business is grabbing investor attention, but it’s a relatively small piece of the pie compared to the more established ecommerce division, which is facing intense competitive pressures.

Sluggish retail sales in China in the last two months of 2025 mean there could be room for disappointment on this front, which could see free cash flow take another dip. The balance sheet doesn’t pose an immediate concern, but if cash generation remains weak and capital expenditure commitments take another step-up, finances could start to look a little stretched.

J D Wetherspoon’s sales growth tempered by cost inflation

J D Wetherspoon started the year with encouraging like-for-like sales growth, which picked up pace towards the end of the first half. However, with costs higher than anticipated, management now expects profit to come in below the levels seen at the same point last year, with consensus forecasts looking for an 8% decline in operating profit to £60mn.

Full-year profits are also expected to fall slightly if sales momentum remains unchanged, so we’ll be looking for a steer on trading in the second half so far. Recent data suggests pub sales in the wider market have continued to grow, led by higher prices rather than footfall. But rising fuel and energy prices in the wake of the war with Iran could cause a further squeeze on the group’s margins and its customers’ spending power, so some caution is to be expected.

Cash generation in focus for Prudential

Prudential heads into results having just appointed HSBC veteran Douglas Flint as its new Chair. This was a positive appointment; there had been fears that the next Chair could steer Prudential in a new direction, but Flint's experience in key markets such as Hong Kong and Singapore should ease those concerns.

Underlying operating profit is expected to come in around $3.3bn; we’ll be watching that figure, as well as cash generation. First-half results last year showed strong growth in cash generation, a key pillar of Prudential’s strategy, which should enable improved shareholder returns, though nothing is guaranteed. We’ll be watching to see if progress continued over the second half of the year and keeping an eye on guidance for 2026.

This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Past performance is not a guide to the future. Investments rise and fall in value so investors could make a loss. Yields are variable and not guaranteed.

This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.