Alibaba remains deeply undervalued at 11x earnings despite a 50% rally, offering a rare entry into AI, robotics, and drone growth. The company boasts a strong balance sheet, robust earnings growth, and major investments in AI, cloud, robotics, and healthcare innovation. Risks include Chinese regulatory uncertainty and geopolitical tensions, especially regarding Taiwan, which temper my position size but not my conviction.
In the latest trading session, Alibaba (BABA) closed at $107.99, marking a +1.62% move from the previous day.
Without the leadership of the red-hot U.S. tech sector, the S&P probably wouldn't be making new highs right about now, especially as the tariff deadline looms while new tariff threats are made.
Alibaba Group Holding Ltd (NYSE:BABA) shares are 2% lower to trade at $106.55 at last glance, sliding alongside the broader market amid tariff uncertainty.
Huawei's artificial intelligence research division has rejected claims that a version of its Pangu Pro large language model has copied elements from an Alibaba model, saying that it was independently developed and trained.
Alibaba remains undervalued after strong year-over-year revenue and profit growth across most business segments, especially e-commerce and cloud computing. AI-driven innovation and expanding cloud services are fueling rapid growth, with AI product revenue seeing triple-digit increases for seven consecutive quarters. The company's balance sheet is robust, with significant net cash and investments, and shares trade at a steep discount to US tech peers like Amazon and Alphabet.
In May 1999, a group of entrepreneurs launched an online B2B website called Alibaba.com, which operated out of a small apartment in Hangzhou, China. Its goal was to connect Chinese manufacturers and trading companies with overseas buyers.
Alibaba's FQ4 results showed strong growth in Ali Cloud and CMR, with AI-related products continuing to drive momentum. The Qwen3 AI model update and Apple partnership are major catalysts, positioning Alibaba as a key player in China's on-device AI space. Despite growth catalysts, profit and revenue missed expectations, and margins remain under pressure.
Alibaba (BABA) closed the most recent trading day at $110.71, moving 2.86% from the previous trading session.
Alibaba trades at just 7x EBT with $82B in cash, despite its dominant position in global e-commerce. Recent improvements in regulatory clarity, capital allocation, and management focus point to a turnaround. Risks remain but appear manageable for long-term investors seeking undervalued large-cap tech exposure.
Alibaba Cloud, the cloud computing arm of Chinese tech giant Alibaba Group, announced the opening of its third data center in Malaysia on Tuesday and disclosed plans to launch a second data center in the Philippines in October, according to a statement released on Wednesday.
Say what you want about bond king Ray Dalio, but the CEO of Bridgewater Associates is very opinionated and is what I would call a high-conviction investor.