The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Alibaba (BABA) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.Alibaba is a member of our Retail-Wholesale group, which includes 210 different companies and currently sits at #10 in the Zacks Sector Rank. The Zacks Sector Rank consi ...

Group 1 - Alibaba is strategically important in China's economy and is expanding its presence in the cloud infrastructure space [1] - Over the past year, Alibaba's shares have risen significantly as investor confidence has returned [1] Group 2 - The company is viewed as having substantial opportunities for growth, particularly in the Real Estate Investment Trusts (REITs) sector [1] - A fundamental investment philosophy is emphasized, focusing on financial health, competitive positioning, and management quality [1]

Core Viewpoint - Alibaba Group (BABA) has shown strong stock performance with a year-to-date gain of 25.9%, significantly outperforming the Zacks Internet-Commerce industry, the Zacks Retail-Wholesale sector, and the S&P 500 [1][2] Group 1: Business Performance and Growth Catalysts - Alibaba's December quarter results revealed revenues of $38.38 billion, reflecting an 8% year-over-year increase, with customer management revenues for Taobao and Tmall Group growing by 9% year-over-year [5] - The Zacks Consensus Estimate for fiscal 2025 revenues is projected at $137.03 billion, indicating a 5.01% year-over-year growth, with earnings estimated at $8.92 per share, showing a 1.4% upward revision over the past 30 days [6] - AliExpress introduced a new self-serve option, AliExpressLocal Marketplace, which has led to a 27% year-on-year increase in orders from U.S. SME buyers during its March Expo event [7] - Fliggy, Alibaba's travel subsidiary, launched AskMe, an AI-powered travel assistant, which is expected to capture a larger market share in China's travel sector, with "Buy Now, Plan Later" bookings increasing over 20% in 2024 [9] Group 2: AI Strategy and Innovations - Alibaba's Qwen AI model family has gained significant traction, with over 90,000 derivative models developed globally, and more than 290,000 companies accessing Qwen APIs through Alibaba Cloud [10] - AI-related product revenues have experienced triple-digit growth for six consecutive quarters, prompting Alibaba to commit to its largest long-term investment in cloud and AI infrastructure in the next three years [11] - The AI-driven B2B search engine, Accio, reached one million users within five months of launch, introducing features that automate market analysis and enhance global sourcing [12] - Ant Group has reduced AI training costs by 20% through a unique approach that combines Chinese and U.S.-made semiconductors [13] Group 3: Financial Position and Shareholder Returns - Alibaba maintains a robust net cash position of $51.9 billion, allowing for strategic investments and significant shareholder returns [14] - The company has repurchased $1.3 billion in shares in the December quarter and approximately $10 billion in the first half of the fiscal year, achieving a 5% net reduction in share count over nine months [15] - Alibaba has streamlined operations by selling non-core assets for approximately $2.6 billion, focusing on higher-growth, higher-margin businesses [16] Group 4: Valuation Metrics - Alibaba is currently trading at a forward 12-month Price/Earnings ratio of 9.8X, significantly lower than the industry average of 19.17X, indicating that the stock is undervalued compared to its peers [17]

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. Today, however, that story may be about to change, as President Trump has decided to exempt ...

Steven Cress is VP of Quantitative Strategy and Market Data at Seeking Alpha. Steve is also the creator of the platform’s quantitative stock rating system and many of the analytical tools on Seeking Alpha. His contributions form the cornerstone of the Seeking Alpha Quant Rating system, designed to interpret data for investors and offer insights on investment directions, thereby saving valuable time for users. He is also the Founder and Co-Manager of Alpha Picks, a systematic stock recommendation tool design ...

Group 1 - The author has a long-standing interest in the energy sector, particularly in oil, gas, energy, and metals, and has transitioned from engineering to capital management since 2018 [1] - The investment strategy focuses on fundamental analysis, emphasizing the importance of a "Margin of Safety" and a "Catalyst" for stock selection, typically maintaining a portfolio of no more than 10 stocks [1] - The author engages with the investment community through writing to share insights and organize thoughts, particularly in the energy sector [1] Group 2 - The article does not provide specific company or industry performance metrics or forecasts [2][3]

Group 1: Market Impact - U.S.-listed Chinese companies such as Alibaba, PDD Holdings, Baidu, NIO, Li Auto, and XPeng are experiencing a decline in stock prices due to new tariffs imposed by the Trump administration, which can reach as high as 245% on certain imports [1] - The trade war has led to a selloff of heavily foreign-owned Chinese tech stocks, with e-commerce firms being the most affected by the increased tariffs on small parcels [6] Group 2: Economic Growth and Forecasts - China's GDP grew by 5.4% in the first quarter, surpassing the analyst estimate of 5.2%, driven by consumer subsidies and strong export shipments [2] - Economists from major international banks, including UBS and Goldman Sachs, have reduced their forecasts for China's 2025 growth to approximately 4% or lower, indicating a potential struggle to meet the growth target of around 5% [4] Group 3: Tariff Dynamics - The tariff war began with a 20% tariff imposed by Trump, escalating to 104% and then to 125% in response to China's retaliatory actions, which included raising its tariffs by 84% [5][6] - The tariffs are expected to lead companies to increase product prices to maintain margins, which could negatively impact demand for lower-priced offerings from Chinese companies [5]

The Internet-Commerce has been flourishing since the pandemic era, buoyed by the convenience of online shopping particularly true of Gen-Z. Many of these buyers have grown up on the Internet and are accustomed to a high level of digitization.Internet - Commerce continues to evolve as the technologies driving it progress. On the one hand, there are increasingly powerful and capable user devices, and on the other are sophisticated, artificial intelligence (AI)-enabled software platforms facilitating transacti ...

President Trump’s announcement of reciprocal tariffs, followed by a 90-day pause, caused major swings in the U.S. stock market. The S&P 500 dropped 9% in the first week of April, marking its worst week since 2020. It then rebounded 5.7% the next week, the best since 2023. A major one-day gain came last Wednesday after Trump paused most tariffs, which boosted investor confidence.Yesterday, markets were lifted by exemptions from reciprocal tariffs on items like smartphones, semiconductors and solar cells. Thi ...

Core Viewpoint - The recent trade conflict with the U.S. has led to a surge in established Chinese tech stocks, indicating a potential reversal in market sentiment towards the sector [1][11]. Company Performance - Alibaba Group experienced a nearly 6% gain, while Tencent Holdings and JD.com saw increases of approximately 3% and almost 5%, respectively [2]. - The positive market reaction is attributed to exemptions from tariffs on various tech goods, which indirectly benefits service-oriented companies like Alibaba, Tencent, and JD.com [4]. Trade Exemptions - President Trump announced exemptions covering a range of tech goods, including semiconductors and smartphones, which contributed to the rise in tech stock prices [3]. - Although service-oriented companies are not directly benefiting from the exemptions, the overall positive sentiment in the tech sector is advantageous for them [4]. Tariff Impact - Companies manufacturing goods in the 20 product categories covered by the new exemptions still face a general 20% tariff on imports to the U.S., a significant reduction from the previously imposed 145% [5]. - The exemptions are intended to provide Chinese tech component manufacturers time to establish operations in the U.S., aligning with the goal of rebuilding American manufacturing [6]. Investor Sentiment - Investors appear optimistic about the potential for a resolution in the trade conflict, reflecting a belief that the tech industry can leverage its influence to secure more favorable conditions [11][12]. - The complexity and costs associated with relocating manufacturing operations back to the U.S. remain significant challenges for the industry [10].