Alibaba Q3 Is Critical - But Not A Catalyst
Alibaba remains a "Buy," with shares materially undervalued ahead of next week's Q3 earnings report. Alibaba's cloud revenue surged 34% YoY, driven by strong AI-related demand, but heavy capex pressured operating income and free cash flow. Valuation suggests $176–$200 per share is achievable if normalized EPS targets of $9–$11 materialize by FY 2027-2028.
AMZN's AWS surge, $244 billion backlog and $200 billion AI spend highlight its edge over Alibaba amid BABA's profit slump and rising competition.
BABA stock is up 28% in six months, but plunging earnings, soaring AI costs and mounting competition raise red flags for 2026 investors.
Investors in U.S. stocks have broadly outperformed the rest of the world for more than a decade straight.
Diamond Hill International Strategy returned 3.87% (net of fees) and the MSCI ACWI ex USA Index returned 5.05%. Sumitomo Densetsu, a Japanese electrical contractor, benefited from a takeover bid by Daiwa House, whose tender offer at a premium price drove the stock higher. Stock selection in information technology and industrials contributed, along with our overweight to communication services.
Qwen3.5 comes in an open-weight and hosted API version, with the company advertising improvements in performance and costs from previous versions. Qwen3.5 supports new agentic capabilities and is compatible with open-source AI agents like those from OpenClaw.
Over the past week, shares of Alibaba (NYSE:BABA) fell 4.46%, coinciding with a shift in retail investor sentiment.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Alibaba on Monday unveiled a new artificial intelligence model Qwen 3.5 designed to execute complex tasks independently, with big improvements in performance and cost that the Chinese tech giant claims beat major U.S. rival models on several benchmarks.
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Alibaba (NYSE: BABA) shares slid 4% on Friday, February 13, following news that the U.S. government is preparing to expand a Pentagon list of companies allegedly supporting the Chinese military.