Access Advance LLC and Alibaba Group today announced that Alibaba has joined the Access Advance Video Distribution Patent Pool (VDP Pool) as a Licensee. The agreement secures a license to the pool's comprehensive coverage of HEVC, VVC, VP9, and AV1 codec technologies. This move expands Alibaba's existing relationship with Access Advance, where it already participates as both a Licensor and Licensee in the VVC Advance Patent Pool and as a Licensor in the VDP Pool. Alibaba's subsidiary Youku also joined the VDP Pool as a Licensee in 2025.

Alibaba operates a diverse video ecosystem spanning e-commerce, entertainment, and digital media. The VDP Pool's single-license structure covers essential patents across all four major video codecs for one royalty rate. This framework eliminates the need to manage multiple bilateral agreements as platforms evolve, addressing the scale and diversity of Alibaba's operations.

Strategic Collaboration

Peter Moller, CEO of Access Advance, highlighted the significance of Alibaba's expanded engagement. He noted that contributing innovation to video codec standards, adding patents to a pool, and taking a license reflects deep engagement with the licensing ecosystem. Moller stated that the VDP Pool is designed for the kind of business model complexity Alibaba represents, and the company is pleased to have their full participation on both sides of the program.

Licensing Framework

The VDP Pool provides a transparent and efficient licensing mechanism for patent owners and implementers. Access Advance manages the HEVC Advance Patent Pool, with over 29,000 patents essential to HEVC/H.265 technology, and the VVC Advance Patent Pool, with over 5,400 patents essential to VVC/H.266 technology. The company's Multi-Codec Bridging Agreement offers eligible licensees a single discounted royalty rate structure for participating in both pools.

Future Outlook

Xiaopeng Ke, Patent Legal Director of Alibaba Group, emphasized that video technology enables Alibaba to serve customers better across its platforms. Ke expressed confidence that the VDP Pool's licensing framework can support the continued development and broad adoption of next-generation video codec standards. Alibaba looks forward to working with Access Advance and other participants to ensure the pool serves the interests of both licensors and licensees.

Alibaba Group Holding Ltd. stock declined in Wednesday's premarket session as investors pulled back from risk assets amid weaker U.S. index futures. The stock continues to trade near its 52-week low, increasing its vulnerability to broader market selling pressure. Nasdaq futures declined 0.54%, while S&P 500 futures slipped 0.23%.

US Restrictions Force Lobbying Exits

Alibaba and Tencent Holding Ltd. have lost several Washington lobbying firms as new U.S. restrictions force companies to choose between representing Chinese firms on the Pentagon’s 1260H blacklist and U.S. defense contractors. A law that took effect Tuesday bars the Defense Department from working with contractors represented by lobbyists who also represent companies designated as allegedly supporting China’s military.

Alibaba lost five lobbying firms, while Tencent lost four, according to recent lobbying disclosures. Alibaba, which denies military ties, sued the Pentagon last week seeking removal from the blacklist, stating the new rules had already prompted firms to end their relationships with the company. The Pentagon’s 1260H list now includes 188 companies across sectors such as artificial intelligence, semiconductors, robotics, and drones.

Technical Indicators Remain Bearish

Alibaba remains well below its key moving averages, suggesting sellers retain control of the intermediate- and long-term trend. The stock trades about 13.5% below its 20-day simple moving average (SMA), 23.2% below its 50-day SMA, 27.2% below its 100-day SMA, and 35.2% below its 200-day SMA.

Momentum is deeply oversold with a relative strength index of 18.63. The moving-average structure remains negative, with the 20-day SMA sitting below the 50-day SMA. The 50-day SMA crossed below the 200-day SMA in April, forming a bearish “death cross.” The first resistance level is $110.63, aligning with the 20-day SMA, while initial support sits near the 52-week low of $91.99.

Earnings Expectations and Analyst Ratings

Alibaba is expected to report quarterly results on Aug. 28, 2026. Wall Street projects earnings of $2.51 per share, up from $2.06 a year earlier. Revenue is anticipated to reach $38.72 billion, compared with $34.57 billion in the prior-year period. The stock trades at about 14.8 times earnings.

Analysts maintain a consensus Buy rating with an average price forecast of $190.86. Recent rating actions include Susquehanna raising its price forecast to $185 on May 15, JPMorgan raising its target to $205 on May 14, and Barclays increasing its forecast to $195 on May 14.

ETF Exposure and Valuation

Alibaba represents about 1.12% of the Avantis Emerging Markets Equity ETF, 1.39% of the Avantis Responsible Emerging Markets Equity ETF, and 3.53% of the SPDR NYSE Technology ETF. Benzinga Edge assigns Alibaba a weak Momentum score of 6.65 and a Quality score of 11.58, though the stock scores strongly on Value at 95.5 and Growth at 83.24. Alibaba shares were down 0.27% at $95.72 during premarket trading on Wednesday.