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BABA's diversified growth, AI traction, and strong financials give it the edge over BIDU in China's tech rebound.
Alibaba's AI revenue grew triple-digits for 7 straight quarters, yet trades at just 11.6x P/E. Revenue growth jumped to 18% in Q4 from 13% in Q3, with 300M+ Qwen AI model downloads worldwide. With 33.5% market share, Alibaba dominates China's cloud market, now expanding AI into manufacturing, agriculture, and SMEs.
Wednesday was a good day for investors to be holding Chinese e-commerce stock Alibaba (BABA 3.98%). Internal company data showed that the massive shopping holiday currently underway in China is proving to be quite lively this year.
Apple and Alibaba's rollout of artificial intelligence services in China is being delayed by a Beijing regulator, the Financial Times reported on Wednesday.
Given China's technological strength and resilience and with AI, EVs and AR leading the way, one can watch stocks like NTES, TSM, BABA and TCEHY.
Michael Burry just sold everything and initiated major short positions. Is 'The Big Short' happening all over again? I don't think so. The story is more complex than that. Here's why.
Alibaba's recent earnings have dampened sentiment on Wall Street as the company missed both EPS and revenue estimates. However, there are several bright spots in the recent earnings numbers that can significantly improve the earnings trajectory of the company. The cloud business is showing a higher revenue growth trend with 18% YoY growth and 69% YoY improvement in EBITA.
Alibaba (BABA 1.06%), the largest e-commerce and cloud company in China, went public at $68 per share on Sept. 18, 2014. It raised $25 billion, making it the largest IPO in history at the time, and it held that record until Saudi Aramco's $29.4 billion IPO in 2019.
BABA remains inherently undervalued, given its well diversified strengths in e-commerce, logistics, and cloud, despite the macro and geopolitical headwinds. Recent earnings highlight robust domestic e-commerce growth, surging cloud AI revenues, and strong international expansion, supporting its long-term upside potential. BABA's rich balance sheet and ongoing share buybacks provide a much needed margin of safety and shareholder value, with the aggressive AI investments eventually being top-line accretive.
Zacks.com users have recently been watching Alibaba (BABA) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.