Investors are hopeful China-U.S. trade tensions could soon ease, after President Donald Trump said the 145% tariff on Chinese imports will drop "substantially.
China's technological strength and resilience amid the trade battle with US suggests that one can buy BABA, BIDU, JD and TCEHY as AI, EVs and AR lead the way.
Alibaba stock has seen major swings in YTD but it is still up by almost 30%. Alibaba could see tailwinds due to a better regulatory and fiscal environment as Chinese government tries to counter challenges due to tariffs. Rapid international expansion could increase the revenue share from outside China to over 40% by 2030, which should reduce geopolitical risks and increase the growth runway.
In the most recent trading session, Alibaba (BABA) closed at $110.15, indicating a +1.18% shift from the previous trading day.
A delisting would take time and send a serious ripple through global markets.
Here is how Alibaba (BABA) and Marks and Spencer Group PLC (MAKSY) have performed compared to their sector so far this year.
Alibaba's Qwen2.5-Omni-7B AI model enhances enterprise applications, driving higher conversion rates and reducing merchant churn on Alibaba.com, boosting recurring revenue. Consolidated revenues grew 8% YoY, while adjusted EBITDA grew 4%, with Cloud Intelligence Group showing exceptional 13% revenue and 33% EBITDA growth. Risks include U.S. tariffs impacting GMV and potential inflation effects on consumer spending, but Alibaba's AI initiatives and cost advantages may offset these risks.
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
BABA's aggressive AI strategy, expanding cloud infrastructure, and strategic focus on core e-commerce businesses position it for exceptional returns in 2025.
The entire market has turned sour on Chinese stocks despite what promise of upside they may have brought over the past two quarters. Asia's powerhouse beat the S&P 500 index in terms of price action until talks of trade tariffs being rolled out by President Trump started to create fear and uncertainty for the future of China's economy as its uneven stance with trade with the United States was placed in the spotlight.
Donald Trump has exempted reciprocal tariffs on certain electronic Chinese imports, giving markets a slight reprieve as the U.S.-China trade war heats up. While tariffs are likely to burn both countries, China could be in a stronger position to replace key U.S. imports. SA Quant has identified five Chinese stocks with strong financials and high Quant Factor Grades that are well-positioned for recovery once market conditions stabilize.
Alibaba has transformed from an empire builder to a leaner, value-focused company, prioritizing shareholder returns with buybacks and dividends. Despite U.S.-China tensions, Alibaba's diversified ecosystem, low U.S. exposure, and strong balance sheet provide a cushion against potential risks. Alibaba's core e-commerce platforms remain highly profitable, while investments in cloud, AI, and international expansion offer significant growth potential.