Alibaba: Valuation Doesn't Reflect The Growth Potential

Jack Elias
193 Followers
(14min)

Summary

  • Alibaba's AI-driven cloud strategy is fueling rapid growth, with AI product revenue posting triple-digit YoY gains for seven consecutive quarters.
  • Open-source Qwen AI models position Alibaba as a central player in the global AI ecosystem, driving developer adoption and future cloud demand.
  • Core e-commerce (TTG) and international segments show strong user growth and monetization, but profitability improvements will require careful execution and time.
  • Despite robust capital returns and a strong cash position, near-term risks include margin compression from heavy AI investments and competitive pressures in e-commerce.

Alibaba.com app. A Chinese company

Robert Way

Introduction:

Alibaba (BABA) (OTCPK:BABAF) delivered strong results for the fourth quarter of their FY25, with substantial progress demonstrated throughout all of the core areas of their business, including growth in cloud and new monetization strategies for their

This article was written by

193 Followers
Hello and welcome to my Seeking Alpha page. My name is Jack Elias, and I am a dedicated business student with a fervent passion for the world of investing. With a solid foundation in both theoretical knowledge and practical experience, I bring a unique perspective to the realm of financial analysis.My journey into the world of investing began during my undergraduate studies in Finance at Arizona State University, where I developed a keen interest in dissecting financial markets and evaluating investment opportunities. Throughout my academic tenure, I have actively sought to deepen my understanding of investment principles, honing my analytical skills through rigorous coursework and hands-on research projects.Driven by a relentless curiosity and a desire to uncover hidden gems in the market, I immerse myself in thorough research and analysis across a diverse array of companies. My overarching goal is to identify opportunities where intrinsic value diverges from market price, with a particular emphasis on companies that are undervalued relative to their fundamentals.While my research spans various industries, I have developed a specialized interest in Real Estate Investment Trusts (REITs). I firmly believe that the REIT sector presents abundant opportunities for astute investors, given its unique dynamics and potential for long-term growth. Through meticulous analysis, I aim to unearth undervalued REITs poised for substantial appreciation.In terms of my investing approach, I adhere to a fundamental philosophy rooted in rigorous analysis and a long-term perspective. I prioritize thorough due diligence, focusing on factors such as financial health, competitive positioning, and management quality. By maintaining a disciplined approach and staying attuned to market trends, I aim to generate sustainable returns for myself and my followers.Thank you for visiting my page, and I invite you to join me on this enriching journey of exploration and discovery in the world of investing.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BABA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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