I am Shubhm Thakkar, an MBA student at the Indian Institute of Management—Indore. I cleared the CFA Level 1 examination that was held in May 2023 and the CFA Level 2 conducted in November 2024. IIM Indore consistently ranks in the Financial Times Top 100 Schools for MBA/ MiM.I have experience publishing on Seeking Alpha as part of my internship at Que Capital, which was a subsidiary of AlmaStreet Capital LLC—an entity that previously published on this platform. At AlmaStreet, I followed a GARP Approach - Gr ...

Core Insights - Alibaba has made its video generation AI models available for free, intensifying competition with rivals like OpenAI [2] - The company is open sourcing four models from its Wan2.1 series, which can generate images and videos from text and image inputs [1] - Open source models, such as those from Alibaba and DeepSeek, allow for community-driven innovation and modification, contrasting with proprietary models [3] Company Developments - Alibaba's stock has surged by 66% in 2025, attributed to improved financial performance and its status as a key AI player in China [5] - The company published its first open source model in August 2023, marking its commitment to the open source movement [4] - Recent support from Chinese President Xi Jinping for the domestic private sector has positively influenced market perception of Alibaba [5] Industry Trends - The trend of open sourcing AI technology is gaining momentum, particularly among Chinese firms, with Alibaba and DeepSeek being prominent examples [4] - There is an ongoing debate regarding the potential commoditization of AI models, as open source technologies become more prevalent [3]

As 44% of US SMEs plan to find new suppliers, driving cost efficiency and enhancing product quality amongst top priorities for year aheadNEW YORK, Feb. 26, 2025 /PRNewswire/ -- Small and medium-sized enterprises (SMEs) across the USA are set to make major changes to their product sourcing strategies this year, according to new data from Alibaba.com, a leading platform for global business-to-business (B2B) e-commerce.Just over a third of US SMEs say that sourcing products at more cost-effective prices (36%) ...

Group 1 - The company specializes in providing daily-rebalanced ETP products that include leveraged, unleveraged, inverse, and inverse leveraged factors [1][3] - The research focuses on macroeconomic assessments, strategic sector viability, and market data trends to inform investment decisions [1] - There is a particular interest in Asian markets, including India and China, with in-depth analyses published on economic trends and business narratives [1] Group 2 - The company does not hold any stock or derivative positions in the companies mentioned, ensuring an unbiased perspective in its analyses [2] - The asset under management (AUM) is primarily influenced by investor interest rather than market movements [3]

My analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market capitalization (from large cap to small cap companies).My academic background is in sociology and I hold a Master’s Degree in Sociology (with main emphasis on organizational and economic sociology) and a Bachelor’s Degree in Sociology and Hi ...

Core Insights - Alibaba has announced a significant increase in AI spending, committing at least 380 billion yuan (approximately $52.44 billion) over the next three years [1] - The company plans to invest more in AI in the next three years than it has in the past decade, aiming to develop artificial general intelligence (AGI) [2] - CEO Eddie Wu emphasized the importance of pushing the boundaries of intelligence to create new opportunities in various AI applications [3] Investment and Strategy - Alibaba's investment in AI is part of a broader trend among major tech companies, including OpenAI, Google, and Meta, all pursuing AGI [3] - The potential of AGI includes capabilities such as analyzing market trends, redesigning supply chains, and enhancing customer service while informing product development [4][5] - Alibaba's stock has seen a significant increase of over 68% this year, indicating strong investor interest in its AI initiatives [5] Partnerships and Market Position - A notable partnership has been established between Alibaba and Apple to develop an AI-powered iPhone for the Chinese market, complying with local regulations requiring a domestic partner for AI product launches [6]

Shares of Alibaba (BABA -9.75%) were taking a dive today after investors balked at the company's big spending plans in cloud and artificial intelligence (AI).As a result, the stock was down 9.7% as of 11:24 a.m. ET. Alibaba faces investor skepticismIt's not unusual for investors to react poorly to massive capital expenditure layouts and it seems like that's what's happening here.The Chinese tech giant, best known for its Tmall and Taobao e-commerce platforms, said today that it plans to invest at least $53 ...

Core Financial Performance - Alibaba Group reported third-quarter fiscal 2025 revenues of $38.3 million, an 8% year-over-year increase in domestic currency terms to RMB 280.1 billion, slightly exceeding expectations [1] - Non-GAAP earnings of $2.93 per ADS fell short of estimates, indicating a complex growth narrative [1] Core Business Momentum and AI Integration - The core business showed resilience, with Taobao and Tmall Group improving monetization through enhanced GMV-based service charges and increased adoption of the marketing platform Quanzhantui [2] - Customer management revenues grew 9% year over year, reflecting successful strategic initiatives in user experience enhancement [2] - The cloud segment maintained triple-digit growth for the sixth consecutive quarter, particularly in AI-related products [2] Strategic Investment and Future Outlook - Alibaba plans to invest more in cloud and AI infrastructure over the next three years than it has in the past decade, signaling a strategic pivot towards capturing opportunities in the AI era [3] - This aggressive investment strategy may pressure near-term margins but is aimed at long-term growth [3] Market Estimates and Financial Health - The Zacks Consensus Estimate for fiscal 2025 revenues is $137.25 billion, indicating 5.17% year-over-year growth [4] - The Zacks Consensus Estimate for fiscal 2025 earnings has been revised downward by 6.2% over the past 60 days to $8.72 per share, reflecting market uncertainty about Alibaba's growth trajectory [4] - The company maintains a strong financial position with a net cash position of RMB 378.5 billion ($51.9 billion) as of Dec. 31, 2024 [5] Stock Performance and Valuation - Alibaba's stock has gained 87.9% in the past year, outperforming the Zacks Internet-Commerce industry and the S&P 500 [6] - The stock is currently trading at a forward 12-month Price/Earnings ratio of 14.24X, significantly lower than the industry average of 23.98X, indicating it is undervalued compared to peers [10] Investment Perspective - While Alibaba's strategic initiatives appear strong, the substantial planned investments in AI and cloud infrastructure may impact near-term profitability [13] - Current market valuations suggest limited immediate upside potential, and investors might benefit from waiting for a more attractive entry point [14] - Existing shareholders are advised to maintain positions, while potential new investors may find better entry points in 2025 as the market evaluates the impact of increased capital expenditure [15]

Market Overview - The U.S. stock market experienced a downturn, with the S&P 500 declining by 1.7%, the Dow Jones falling by 2.5%, and the Nasdaq slipping by 2.5% due to geopolitical tensions, inflation concerns, and a potentially less-dovish Federal Reserve [1] - Investors showed increased interest in Chinese stocks, influenced by the DeepSeek euphoria, which negatively impacted major U.S. tech companies [1] Defense Budget - The U.S. Defense Secretary proposed an 8% reduction in military spending over the next five years, which would mark the largest cut in Pentagon spending since 2013 if implemented [2] Economic Indicators - The University of Michigan consumer sentiment index dropped to 64.7 in February, reflecting a nearly 10% decline, as consumers expressed concerns over inflation and potential new tariffs [3] - U.S. existing home sales fell to 4.08 million units in January, and the services purchasing managers' index (PMI) entered contraction territory for February [4] ETFs Performance SMCI-Heavy ETFs - Defiance Daily Target 2X Long SMCI ETF (SMCX) increased by 88.4%, and GraniteShares 2x Long SMCI Daily ETF (SMCL) rose by 86.4% as Super Micro Computer (SMCI) stock surged by 30.7% last week, with projected sales reaching $40 billion in 2026, indicating a 60% growth from 2025 revenue guidance [5] Alibaba-Heavy ETF - GraniteShares 2x Long BABA Daily ETF (BABX) rose by 28.2%, with Alibaba (BABA) stock increasing by 13.6% after reporting a 7.6% year-over-year revenue growth to $38.5 billion, despite missing earnings estimates [6] Natural Gas-Heavy ETF - ProShares Ultra Bloomberg Natural Gas (BOIL) increased by 25.6% as U.S. natural gas futures rose to $4.3/MMBtu, driven by cold weather impacting supply and increasing demand [7] Micron-Heavy ETF - Direxion Daily MU Bull 2X Shares (MUU) rose by 15.3%, while Micron Technology (MU) stock gained 0.4% over the last week, despite concerns about a decline in gross margins for the upcoming quarter [8][9]

Core Viewpoint - The Chinese stock market is experiencing a turnaround, with Alibaba (NYSE: BABA) benefiting significantly from this shift, highlighted by a major price target upgrade from Morgan Stanley. Group 1: Market Conditions - The Chinese stock market has faced significant losses for years, but conditions began to improve in September 2024, with a notable reversal by early 2025 [1] - The CSI 300 index rose 19.91% and Hong Kong's HSI rallied 15.60% in September and October, indicating a positive shift in market sentiment [7] Group 2: Alibaba's Performance - Alibaba's stock received a price target upgrade from Morgan Stanley, increasing from $100 to $180, predicting a 27.79% rally from its price of $140.85 [2] - The upgrade was supported by Alibaba's improved outlook and its exposure to artificial intelligence (AI), alongside a favorable outlook for the internet industry [3] Group 3: Technological Developments - The recent rally in Alibaba's stock is partly attributed to the unveiling of its AI model, Qwen 2.5, which contributed to the positive market sentiment [5] - The introduction of the DeepSeek AI model has disrupted the tech sector, indicating a shift from consumption to technological advancements in the Chinese internet industry [4][6] Group 4: Investment Initiatives - Alibaba announced a $53 billion investment in AI infrastructure over the next three years, reflecting its commitment to technological innovation [9] - Michael Burry's significant investment in Alibaba has turned into a lucrative position, benefiting from the combined effects of government stimulus and the AI rally [10]