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Tag: Alibaba

  • Forget DeepSeek R1, apparently it’s now Alibaba that has the most powerful, the cheapest, the most everything-est chatbot


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    Alibaba.

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    As Ferris astutely observed, life moves pretty fast in chatbot land. So, forget that ancient news about DeepSeek’s cheap and powerful LLM tanking Nvidia’s share price. Because here comes another Chinese tech giant, Alibaba, with its own new AI model that surpasses the lot. Well, it does according to Alibaba.

    Qwen 2.5-Max, for it is he (she? they? take your pick), was released today according to Reuters and with it some pretty bombastic claims.

    “Qwen 2.5-Max outperforms…almost across the board GPT-4o, DeepSeek V3 and Llama-3.1-405B,” Alibaba says. Notably, that’s DeepSeek V3, not DeepSeek R1, which is the updated model that helped wipe $600 billion from Nvidia’s share price in a day.

    Still, those are OpenAI and Meta’s most advanced open-source models. So, if Alibaba’s claims are true, Qwen 2.5-Max is no slouch.

    Reuters notes that the Alibaba release plays into a wider price war operating in China for access to AI models. It was an earlier DeepSeek model that moved Alibaba to announce massive 97% price cuts for access to its AI models.

    For now, it’s unclear how resource intensive the Qwen 2.5-Max is or is not. The thing that really rattled the markets when it comes to DeepSeek R1 arguably isn’t its outright performance, but rather claims that it was trained on just $6 million dollars’ worth of slightly hobbled Nvidia H800 GPUs, a small fraction of the cost associated with the huge GPU arrays used by the likes of OpenAI and Meta to train their models.

    It’s also emerged that the full-precision DeepSeek R1 model can run on just $6,000 of PC hardware, that cost mostly being eaten up by lots of memory but without the need for a megabucks Nvidia GPU.

    So, the fact alone that Alibaba has a competitive model isn’t earth shattering news. But the questions of the hardware used and the costs involved are intriguing.

    There may also be an extent to which this first species of chatbot tech is maturing and converging. Anyone familiar with ChatGPT 4o can’t help, for instance, to note the eerie similarities with, say, DeepSeek R1.

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    The style and tone of the text, the delivery, the length of responses, the actual content, the tendency to hallucinate falsehoods, the sense of very comparable invisible guard rails and, for want of a better term, social adjustment—everything seems virtually identical, for better and indeed also for worse.

    Where this all leads is anyone’s guess. Maybe we’ll be stuck with a load of samey, semi-useful, oft-hallucinating bots for the foreseeable. Or maybe the AGI or artificial general intelligence explosion is just around the corner. Either way, I for one…no, actually, I don’t welcome them. But I am fascinated in what happens next.



    If you thought DeepSeek R1 was the ultimate chatbot, think again! According to recent reports, Alibaba has unveiled a new chatbot that is not only the most powerful but also the cheapest and the most everything-est in the market.

    With advanced AI technology and a wide range of capabilities, Alibaba’s chatbot is revolutionizing the way we interact with technology. From customer service to virtual assistants, this chatbot can do it all.

    So, if you’re in the market for a top-of-the-line chatbot, look no further than Alibaba. Say goodbye to DeepSeek R1 and hello to the future of chatbots.

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    #Forget #DeepSeek #apparently #Alibaba #powerful #cheapest #everythingest #chatbot

  • Not Just DeepSeek – Alibaba Unveils AI Model To Rival OpenAI’s Operator – Alibaba Gr Hldgs (NYSE:BABA)


    On Monday, Chinese e-commerce juggernaut Alibaba Group Holding’s BABA cloud unit released a new family of AI models, Qwen2.5-VL, that can parse files, comprehend videos, count objects in images, and control a PC.

    This model is similar to the one powering OpenAI’s recently launched Operator. Qwen2.5-VL model claimed to beat OpenAI’s GPT-4o, Anthropic’s Claude 3.5 Sonnet, and Google’s Gemini 2.0 Flash in various video understanding, math, document analysis, and question-answering evaluations, TechCrunch reports.

    Also Read: US Listed China Stocks See Positive Momentum After Trump Skips Tariff Threats

    Qwen2.5-VL claimed it can analyze charts and graphics, extract data from invoice and form scans, and comprehend multiple-hour-long videos.

    It can also recognize IPs from films and TV series.

    Qwen2.5-VL can interact with software both on PCs and mobile devices. It can launch the Booking.com app for Android and can book a flight from Chongqing to Beijing, TechCrunch cites from Hugging Face tech lead Philipp Schmid’s video tweet on X.

    In January, Alibaba Cloud launched new AI tools and LLMs at its developer summit. Alibaba’s cloud revenue grew 7% to $4.22 billion in second-quarter.

    Meanwhile, U.S. tech stocks plunged in premarket trading Monday as Chinese open-source artificial intelligence platform DeepSeek R1 triggered made the market jittery over sustainability of the AI technology investment in the U.S. tech firms. Nvidia Corp NVDA lost $600 billion in market cap on Monday.

    DeepSeek’s open-source AI model, developed for under $6 million, reportedly outperformed leading U.S. models like those from OpenAI.

    Reportedly, Microsoft Corp MSFT committed $80 billion in AI infrastructure spending for 2025, and Meta Platforms Inc META earmarked $60-65 billion.

    For context, the Biden administration had slapped multiple semiconductor technology embargoes on China, restricting the country from accessing sophisticated AI technologies from Nvidia, Taiwan Semiconductor Manufacturing Co TSM citing national security threats.

    Investors can gain exposure to stocks of companies domiciled in China through the iShares China Large-Cap ETF FXI and the KraneShares Trust KraneShares CSI China Internet ETF KWEB.

    Price Action: BABA stock closed higher by 1.06% at $90.94 premarket at the last check on Tuesday.

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    Alibaba, one of the world’s leading technology companies, has unveiled a new AI model that is set to rival OpenAI’s Operator. This new model, named Not Just DeepSeek, is designed to revolutionize the way artificial intelligence is used in various industries.

    Not Just DeepSeek boasts advanced capabilities in natural language processing, image recognition, and data analysis. It is equipped with state-of-the-art algorithms that allow it to process large amounts of data at lightning speed, making it a powerful tool for businesses looking to streamline their operations and improve efficiency.

    With the unveiling of Not Just DeepSeek, Alibaba is positioning itself as a major player in the AI space, challenging the dominance of companies like OpenAI. This move is set to shake up the industry and drive innovation in the field of artificial intelligence.

    Investors and tech enthusiasts alike are eagerly awaiting the impact of Not Just DeepSeek on the market. With Alibaba’s track record of success and commitment to cutting-edge technology, this new AI model is poised to make a significant impact on the industry.

    Stay tuned for updates on Not Just DeepSeek and its potential to revolutionize the world of artificial intelligence.

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    2. Alibaba AI model
    3. OpenAI operator
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    10. Alibaba vs OpenAI

    #DeepSeek #Alibaba #Unveils #Model #Rival #OpenAIs #Operator #Alibaba #Hldgs #NYSEBABA

  • Is Alibaba Group Holding (BABA) the Cheap AI Stock to Buy in 2025?


    We recently published a list of 12 Cheap AI Stocks to Buy in 2025. In this article, we are going to take a look at where Alibaba Group Holding Limited (NYSE:BABA) stands against other cheap AI stocks to buy in 2025.

    Artificial Intelligence (AI) was a buzzword around Wall Street for most of 2024. AI has shown immense promise but comes with significant risks. Big AI players are dominating the broader market, but there will be opportunities for other companies to explore as the AI market continues to expand. For instance, the new administration is keen on technological advancement, and recently, President Donald Trump announced a $500 billion AI initiative, a joint venture known as Stargate between OpenAI, Softbank, and Oracle.

    However, DeepSeek’s introduction shocked the U.S. companies after it released a new AI model, a much better alternative to GPT-4. DeepSeek claims to have designed the AI model in just two months and at around under $6 million using Nvidia’s less-advanced H800 chips, as reported by Reuters on January 27. Since the news broke out, NVIDIA Corporation (NASDAQ:NVDA) shares have plunged over 16%, wiping away $600 billion in market capitalization, the biggest one-day loss in U.S. history.

    Moor Insights & Strategy founder, CEO, and chief analyst Patrick Moorhead, speaking to Market Domination, shared his views on DeepSeek. Moorhead was impressed by the efficiency of DeepSeek’s AI. He pointed out that the Chinese have used different techniques compared to American developers, where they were able to parse or train maybe 5% of the data, which is a 95% reduction.

    However, Moorhead also addressed the U.S. market drop as an “overreaction.” “I think the market overall should be going crazy because [this is the] uplift of what we were looking for [from AI],” said Moorhead. He added that the investors’ focus should be on the progress in inference.

    It might be a good time to invest in AI stocks, especially cheap AI stocks during the market’s overreaction.

    To determine the list of cheap AI stocks, we went through various news articles and stock analyses. We shortlisted the AI stocks with the minimum analyst upside of 30%, as of January 27. Cheap, in the context of this article, means stocks that Wall Street analysts believe are undervalued and will surge to higher share prices. We have ranked the cheap AI stocks to buy based on their popularity among hedge funds, as of Q3 2024, in ascending order.

    Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).



    Alibaba Group Holding (BABA) has long been known as a powerhouse in the e-commerce industry, but in recent years, the company has been making significant strides in the field of artificial intelligence (AI). With its strong focus on AI research and development, could Alibaba be the cheap AI stock to buy in 2025?

    As one of the largest e-commerce companies in the world, Alibaba has access to vast amounts of data that can be used to train AI algorithms and improve its services. The company has been investing heavily in AI technologies, including natural language processing, computer vision, and machine learning, to enhance customer experiences and drive business growth.

    In addition to its core e-commerce business, Alibaba has also been expanding its reach into other industries, such as cloud computing, fintech, and healthcare, all of which can benefit from AI applications. With its diverse portfolio of businesses and strong technological capabilities, Alibaba is well-positioned to capitalize on the growing demand for AI solutions in the coming years.

    Despite its strong growth potential, Alibaba’s stock price has been relatively stagnant in recent years, leading some investors to view it as a cheap investment opportunity. With its solid fundamentals, strong growth prospects, and increasing focus on AI, Alibaba could be a compelling option for investors looking to capitalize on the AI revolution in 2025.

    While investing in stocks always carries risks, Alibaba’s strong position in the e-commerce and AI industries makes it a potentially attractive option for investors with a long-term horizon. As always, it’s important to conduct thorough research and analysis before making any investment decisions, but Alibaba Group Holding (BABA) could be worth considering as a cheap AI stock to buy in 2025.

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    Alibaba Group Holding, BABA, cheap AI stock, buy in 2025, Alibaba Group stock analysis, AI technology investments, Alibaba Group future growth, Alibaba Group stock price forecast, Alibaba Group investment opportunities.

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  • Alibaba Files Disclosure on Share Movements Amidst Strategic Repurchases


    Alibaba ( (BABA) ) has provided an announcement.

    Alibaba Group Holding Limited submitted several Next Day Disclosure Returns to the Hong Kong Stock Exchange for dates January 20, 22, 23, and 24, 2025, as part of its compliance with listing rules regarding changes in issued shares or treasury shares. These filings detailed the company’s recent share repurchases on the New York Stock Exchange between January 13 and January 17, 2025, reflecting the company’s active management of its equity structure. This activity may indicate strategic financial maneuvers aimed at optimizing shareholder value and maintaining a strong market position.

    More about Alibaba

    Alibaba Group Holding Limited is a prominent player in the technology sector, primarily focusing on e-commerce, retail, internet, and technology services. It is listed on the Hong Kong Stock Exchange and operates with a significant emphasis on digital and mobile commerce, with a strong market presence in China and globally.

    YTD Price Performance: 1.35%

    Average Trading Volume: 13,928,575

    Technical Sentiment Consensus Rating: Buy

    Current Market Cap: $202.6B

    For detailed information about BABA stock, go to TipRanks’ Stock Analysis page.



    Alibaba Group Holding Limited has recently filed a disclosure with the Securities and Exchange Commission (SEC) regarding the company’s share movements amidst strategic repurchases. The Chinese e-commerce giant has been actively repurchasing its own shares in an effort to boost shareholder value and signal confidence in its long-term growth prospects.

    According to the disclosure, Alibaba has repurchased a significant number of shares over the past few months, totaling billions of dollars in value. The company has stated that these repurchases are part of its ongoing capital allocation strategy and are intended to optimize its capital structure and enhance shareholder returns.

    Alibaba’s share repurchase program comes at a time when the company is facing increased regulatory scrutiny in China and heightened competition in the e-commerce market. Despite these challenges, Alibaba remains confident in its ability to navigate the changing landscape and continue to deliver value to its shareholders.

    Investors and analysts will be closely monitoring Alibaba’s share movements in the coming months to gauge the company’s confidence in its future prospects. With its strong financial position and market-leading position in the e-commerce industry, Alibaba is well-positioned to weather any headwinds and emerge stronger in the long run.

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    #Alibaba #Files #Disclosure #Share #Movements #Strategic #Repurchases

  • Alibaba Repurchases Over 24M Shares of BABA Stock


    Chinese e-commerce and tech giant Alibaba (BABA) recently bought back company shares to cancel them. A series of transactions saw the company repurchase shares of BABA stock from investors. The filings cover actions as far back as December, including more than 24 million shares being canceled.

    Share repurchases and cancellations are often a positive catalyst for a company’s stock as they increase investor morale. It shows shareholders the company has the funds to safely repurchase its stock, returning cash to those who invested in it.

    In this case, investors reacted well to the stock repurchase and cancelation news. Shares of BABA stock are up 0.76% as of this writing. This builds on a 24.74% increase over the last year and a 5.97% rise year-to-date.

    What the Share Buyback Means for Alibaba

    With this share buyback, investors will potentially see improved performance from Alibaba. Reducing float, which is the number of shares available on the public market, can increase a company’s earnings per share and other financial metrics.

    Another change from share repurchases is changing stock prices. When shares are canceled, it can empower the remaining shares on the market. That makes sense as this is the opposite of a share offering, which dilutes investors’ stakes in a company. This news can increase share price without largely affecting a company’s market capitalization.

    Is BABA Stock a Buy, Sell, or Hold?

    Turning to Wall Street, the analysts’ consensus rating for Alibaba is Strong Buy based on 11 Buy and one Hold ratings over the last three months. With that comes an average price target of $121.33, a high of $144, and a low of $105. This represents a potential 35.88% upside for BABA shares.

    See more BABA stock analyst ratings



    In a recent move, Alibaba Group Holdings Limited has repurchased over 24 million shares of its own stock, symbolized as BABA, in a bid to bolster investor confidence and demonstrate the company’s belief in its long-term growth potential.

    The repurchase of shares comes at a time when Alibaba’s stock price has been under pressure due to regulatory challenges in China and concerns about the impact of geopolitical tensions on its business operations. By buying back its own stock, Alibaba aims to signal that it considers its shares undervalued and believes in the future success of the company.

    This repurchase of shares is also seen as a strategic move by Alibaba to improve its financial performance and strengthen its position in the market. By reducing the number of outstanding shares, the company can potentially boost its earnings per share and increase shareholder value.

    Overall, Alibaba’s repurchase of over 24 million shares of BABA stock reflects the company’s commitment to creating long-term value for its shareholders and its confidence in its ability to navigate the challenges it currently faces. Investors will be closely watching how this move impacts Alibaba’s stock price and future performance in the coming months.

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    Alibaba stock, Alibaba repurchase, BABA stock, Alibaba news, stock market, investment, share repurchase, Alibaba Group, Chinese e-commerce, BABA shares, financial news, stock repurchase, Alibaba stock update

    #Alibaba #Repurchases #24M #Shares #BABA #Stock

  • China’s Tech Giant At A Discount: What’s Holding Alibaba Back?


    Chinese e-commerce and cloud behemoth Alibaba stock stock has gained about 12% since early 2024 but remains down over 70% from its 2020 highs. The stock trades at a reasonable $85 per share, equivalent to less than 10x projected FY’25 earnings. In comparison, Amazon trades at approximately 36x forward earnings. Alibaba also holds about $50 billion in net cash—roughly a quarter of its market value—bringing the ex-cash multiple down to under 8x. So, what factors are holding the stock back, and what are the potential catalysts for recovery? Separately, SNOW has lagged. See Snowflake Stock: Melting Expectations Or Temporary Setback?

    What’s Held Alibaba Stock Back of Late?

    Alibaba reported better-than-expected Q2 FY’25 results, with revenue rising 5% year over year to 236.5 billion yuan (approximately $33.7 billion) and net income surging 58% to 43.9 billion yuan (around $6 billion). However, China’s retail market remains weak due to mixed consumer sentiment and slowing economic growth following the real estate crisis. This has impacted spending, particularly on discretionary items. Increasing competition in the e-commerce space has also proved a challenge for the company. PDD, the owner of discount platforms Pinduoduo and Temu, has gained traction as Chinese consumers have turned a bit more value-conscious on account of the sluggish economy. Revenue from Alibaba’s Taobao and Tmall online marketplaces grew by just 1% year-over-year to $14.1 billion in Q4 FY’24. Concerns about a mixed recovery in consumption could linger, potentially exacerbated by higher U.S. tariffs and the risk of an escalating U.S.-China trade war as Donald Trump assumes the U.S. presidency.

    Trends That Could Help Alibaba

    Since late September 2024, China has introduced substantial stimulus measures and interest rate cuts, which could help to stimulate economic growth and consumer spending. Alibaba has also been tweaking its fee model and recently replaced its annual fixed service fee for vendors with a 0.6% software service fee on gross merchandise value for transactions on Tmall and Taobao. This move could enhance revenue from its core customer management services, following significant investments in its platforms and technology. The company’s digital marketing tool, Quanzhantui, is also expected to boost monetization for Taobao and Tmall marketplaces.

    Alibaba’s cross-border e-commerce platforms, AliExpress and Trendyol, have emerged as key growth drivers, with revenues soaring nearly 29% to $4.5 billion in the most recent quarter, led by the strong performance of initiatives such as the AliExpress Choice program which offers free shipping and other services. Growth in the international business could help soften the weakness in China in the interim. Alibaba is also adjusting its broader e-commerce strategy to emulate value-focused competitors like Pinduoduo.

    While Alibaba’s cloud computing business saw a slowdown post the Covid-19 pandemic due to waning demand for computing power associated with remote work, and remote education, things have been getting better. Over the last quarter, the company’s Cloud Intelligence Group has returned to growth, with sales rising 7% year-over-year to 29.6 billion yuan ($4.2 billion), driven by strong public cloud growth and a triple-digit increase in AI-related product revenue. There’s a possibility that the company’s AI initiatives could potentially see backing from the Chinese government, amid U.S. restrictions on advanced semiconductor chip exports to China and the growing geopolitical importance of AI. In the AI space, Alibaba is developing open-source large language models, allowing developers greater flexibility to build custom solutions using its technology. This strategy could encourage developers to adopt Alibaba’s cloud services for deploying these models.

    Notably, BABA stock has performed worse than the broader market in each of the last 4 years. Returns for the stock were -49% in 2021, -26% in 2022, -11% in 2023, and 12% in 2024. The Trefis High Quality Portfolio, with a collection of 30 stocks, is less volatile. And it has comfortably outperformed the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment around rate cuts and multiple wars, could BABA face a similar situation as it did in 2021, 2022, 2023, and 2024 and underperform the S&P over the next 12 months – or will it see a recovery?

    We estimate Alibaba’s valuation at about $108 per share – indicating a 27% upside from the market price of about $85 per share. See our analysis of Alibaba revenues for more details on how Alibaba’s revenues are likely to trend.

    Invest with Trefis Market Beating Portfolios

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    China’s Tech Giant At A Discount: What’s Holding Alibaba Back?

    Alibaba, the e-commerce giant founded by Jack Ma, is often referred to as the “Amazon of China.” With a market cap of over $500 billion, it is one of the largest tech companies in the world. However, despite its impressive growth and dominance in the Chinese market, Alibaba’s stock price has recently been trading at a discount compared to its peers.

    So, what’s holding Alibaba back? There are a few factors at play.

    First, regulatory challenges in China have been a major concern for Alibaba. The Chinese government has been cracking down on tech companies, including Alibaba, for various reasons such as antitrust violations and data privacy concerns. This has led to increased scrutiny and potential fines for Alibaba, which has weighed on its stock price.

    Second, competition in the e-commerce space in China is fierce. While Alibaba has been the dominant player for many years, it faces stiff competition from other tech giants like JD.com and Pinduoduo. These competitors have been gaining market share and putting pressure on Alibaba’s growth prospects.

    Lastly, concerns about Jack Ma’s influence and involvement in the company have also impacted Alibaba’s stock price. Ma’s outspoken nature and clashes with Chinese regulators have raised questions about his leadership and the company’s future direction.

    Despite these challenges, many analysts believe that Alibaba’s long-term growth prospects remain strong. The company’s diverse business model, strong brand recognition, and expanding international presence are all positive factors that could drive future growth.

    Investors looking for a tech giant at a discount may see Alibaba as an attractive opportunity, but it’s important to consider the risks and challenges the company faces in the current market environment. Only time will tell if Alibaba can overcome these obstacles and continue its impressive growth trajectory.

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    7. Alibaba market performance
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    #Chinas #Tech #Giant #Discount #Whats #Holding #Alibaba

  • Is Alibaba Group Holding (BABA) Among the Cheapest Stocks with Biggest Upside Potential?


    We recently compiled a list of the 12 Cheapest Stocks with Biggest Upside Potential. In this article, we are going to take a look at where Alibaba Group Holding Limited (NYSE:BABA) stands against other cheapest stocks with biggest upside potential.

    Stocks rallied on January 15, following an encouraging consumer price index (CPI) report that indicated a slowdown in core inflation and strong earnings from major U.S. banks. The Bureau of Labor Statistics reported that core inflation, which excludes food and energy, rose 3.2% in December, down from the previous month and slightly below the 3.3% forecast by economists surveyed by Dow Jones. Headline inflation increased 2.9% over the past year, matching expectations.

    In an interview on January 16, Tom Lee, Managing Partner at Fundstrat provided his outlook on the current market dynamics and stock performance expectations for the year. Lee noted that the market is showing relief following the better-than-expected December Consumer Price Index (CPI) report, which, along with the Producer Price Index (PPI), has been dovish. This has set the stage for bond yields, which had been approaching 5%, to cool down, particularly in a context where market sentiment has been largely negative. Lee emphasized that the recent dovish inflation prints, including the core CPI, have alleviated fears of a hot number, leading to a reduction in the probability of a rate hike, as reflected in the Fed funds futures.

    Lee also discussed the implications of the California fires on future inflation, suggesting that these events could introduce additional volatility. However, he remains optimistic about the inflation outlook over the next three months, expecting it to be significantly lower compared to the levels seen in November and October. He pointed out that the inflation figures in January of last year were around 0.4%, indicating that the upcoming months could offer favorable comparisons, which is positive for the market.

    READ ALSO: 11 Best 3D Printing and Additive Manufacturing Stocks To Buy and 11 Best Potash Stocks to Buy According to Hedge Funds.

    Regarding the potential for a good year in the stock market, especially after the S&P’s back-to-back 20%+ gains, Lee expressed a high level of optimism, estimating an 80% chance of achieving double-digit returns for the year. He highlighted the positive start to January, with the S&P main index already up 0.7% by January 15, as a good harbinger for the year ahead. However, Lee acknowledged that the market’s performance could be challenged if bond yields remain elevated, as this would represent a severe tightening of financial conditions, potentially impacting sectors such as housing.



    Alibaba Group Holding (BABA) has been a dominant player in the e-commerce and technology industry for years, but recent challenges have caused its stock price to take a hit. However, some analysts believe that this dip in price may present a buying opportunity for investors looking for a bargain with significant upside potential.

    With a market cap of over $400 billion, Alibaba is one of the largest and most well-known companies in China. Its e-commerce platform, along with its cloud computing and digital media services, have helped it become a global powerhouse. Despite recent regulatory crackdowns and antitrust investigations in China, Alibaba’s fundamentals remain strong, with a diverse revenue stream and a growing user base.

    At its current price, Alibaba’s stock is trading at a discount compared to its historical valuations and its peers in the industry. This has led some analysts to believe that the stock is undervalued and has the potential for significant upside once the regulatory uncertainties are resolved and the company’s growth prospects become clearer.

    Investors looking for a bargain with the potential for substantial gains may want to consider adding Alibaba Group Holding (BABA) to their portfolios. While there are risks associated with investing in Chinese companies, the long-term growth potential of Alibaba and its position as a leader in the e-commerce and technology sectors make it a compelling option for investors seeking value opportunities in the market.

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  • Alibaba To Sell Chinese Hypermarket Operator As It Focuses On Core Business

    Alibaba To Sell Chinese Hypermarket Operator As It Focuses On Core Business


    Alibaba Group Holding has agreed to sell its controlling stake in Chinese hypermarket operator Sun Art for up to HK$12.3 billion ($1.6 billion), as the e-commerce company continues to dispose non-core assets even though the deal is expected to generate billions of dollars in losses.

    The e-commerce behemoth said Chinese private equity firm DCP Capital, led by former KKR Greater China CEO David Liu, has agreed to acquire its more than 70% stake in Hong Kong-listed Sun Art, which operates the RT-Mart chain and the Costco-like M-Club membership stores across China, according to a stock exchange filing Wednesday. Dual-listed in New York and Hong Kong, Alibaba said the asset disposal will lead to 13.2 billion yuan ($1.8 billion) in losses attributable to its shareholders.

    Thomas Chong, a Hong Kong-based analyst at investment bank Jefferies, says Alibaba’s disposal had already been expected by the market following an earlier Sun Art announcement, as well as the company’s December announcement of the sale of the Intime department store chain.

    “The disposals align with its strategies to focus on core business and return value to shareholders, ” Chong wrote in a Wednesday research note.

    The company first invested in Sun Art in 2017, and put in another $3.6 billion in 2020 as it sought to collaborate with the latter on a so-called new retail strategy, which once included omnichannel deliveries and a more tailored shopping experience using customer analysis software. But as the Chinese economy struggled after years of stringent Covid measures and amid a protracted property crisis, the deal failed to live up to its expectations as consumers spend less and less.

    Today, Sun Art is suffering from declining sales, leading it to shut underperforming stores and laying off almost 20,000 employees, according to its 2024 interim report—its latest financial results available. Over the past five years, its shares have lost almost 80% of value, giving the hypermarket operator a market cap of about HK$18 billion.

    Alibaba itself faces heightened market competition. In recent years it has been ceding market share to rivals including billionaire Colin Huang’s PDD Holdings, which used deep discounts to attract frugal shoppers amid China’s economic downturn. Now led by a new management team including CEO Eddie Wu, Alibaba is trying to reclaim lost ground by promoting more value-for-money products and using AI for targeted marketing.



    Alibaba, the Chinese e-commerce giant, has announced its plans to sell its hypermarket operator as it shifts its focus to its core business. The company is looking to streamline its operations and concentrate on its e-commerce, cloud computing, and digital media businesses.

    The hypermarket operator, known as Sun Art Retail Group, operates a chain of hypermarkets and supermarkets in China under the Auchan and RT-Mart banners. Alibaba acquired a controlling stake in Sun Art Retail Group in 2017, but has now decided to divest its interest in the company.

    Alibaba’s decision to sell the hypermarket operator comes as the company faces increasing competition in the retail sector from rivals such as JD.com and Pinduoduo. By selling Sun Art Retail Group, Alibaba aims to free up resources and focus on strengthening its core businesses.

    This move is part of Alibaba’s broader strategy to streamline its operations and optimize its portfolio of businesses. The company has recently made several strategic investments and divestments to position itself for future growth and profitability.

    Alibaba’s decision to sell its hypermarket operator underscores the company’s commitment to focusing on its core strengths and driving innovation in the rapidly evolving Chinese retail market. It will be interesting to see how this move impacts Alibaba’s overall business strategy and future growth prospects.

    Tags:

    1. Alibaba
    2. Chinese hypermarket operator
    3. Sell
    4. Focus
    5. Core business
    6. E-commerce
    7. Online marketplace
    8. Retail industry
    9. Business strategy
    10. Growth plan

    #Alibaba #Sell #Chinese #Hypermarket #Operator #Focuses #Core #Business

  • Alibaba to Sell China’s Sun Art to Buyout Firm at Big Discount

    Alibaba to Sell China’s Sun Art to Buyout Firm at Big Discount


    (Bloomberg) — Alibaba Group Holding Ltd. agreed to sell its shares in Sun Art Retail Group Ltd. to private equity firm DCP Capital, unloading another high-profile physical commerce asset at a discount to focus on its core online business.

    Most Read from Bloomberg

    China’s e-commerce pioneer expects gross proceeds of up to HK$12.3 billion ($1.6 billion) from selling its more than 70% holding in the chain of Costco-like hypermart stores. That’s significantly less than the $3.6 billion Alibaba paid just to double its stake in Sun Art in 2020, and falls far short of Sun Art’s 2024 market value of about $3 billion. The Chinese retailer’s shares sank as much as 35% in early Hong Kong trading, while Alibaba slid more than 1%.

    The sale accelerates Alibaba’s retreat from physical retail, a major investment initiative spearheaded years ago by previous CEO Daniel Zhang.

    The company is now integrating its domestic and international ecommerce operations under the leadership of fast-rising executive Jiang Fan, while steadily selling off holdings it doesn’t consider essential. That last is considered critical enough that Alibaba is willing to swallow significant losses on its past bets, even as it raises capital to invest in areas such as AI and the cloud.

    What Bloomberg Intelligence Says

    Alibaba will incur about $3 billion of losses from the disposal of non-core retail assets including Sun Art, we calculate. The sale of the grocer at a 0.6x price-to-net asset valuation trails market value estimates by 30% and lags JD.com’s 3.5x multiple when it sold Yonghui Superstores last year. Alibaba’s sale proceeds are linked to Sun Art’s profits through 2028 and may therefore be pressured by Meituan’s strategic tie-up with Walmart in China.

    – Catherine Lim and Trini Tan, analysts

    Click here for the research.

    Once a dominant player across Chinese commerce, intensifying competition from PDD Holdings Inc. and ByteDance Ltd. have forced Alibaba back to its roots as an online commerce platform.

    Under new chief Eddie Wu, Alibaba is focusing investment on areas it considers more promising, from the cloud to online marketplaces. It’s also ramping up abroad, for instance by creating a joint venture to speed up a Korean expansion.

    Just last month, Alibaba agreed to sell its Intime department store business to Youngor Fashion Co. for around $1 billion, incurring a loss of about 9.3 billion yuan ($1.3 billion) on its initial investment. Alibaba faces a loss of about $3 billion overall on its physical retail deals so far, Bloomberg Intelligence estimates.



    Alibaba, the Chinese e-commerce giant, has announced that it will be selling its stake in China’s Sun Art Retail Group to a buyout firm at a significant discount. This move comes as Alibaba looks to streamline its operations and focus on its core e-commerce business.

    Sun Art Retail Group is one of China’s largest hypermarket operators, with a strong presence in the country’s retail sector. Alibaba acquired a 36% stake in the company in 2017, in a bid to strengthen its foothold in the offline retail market.

    However, Alibaba has now decided to divest its stake in Sun Art Retail Group, selling it to a buyout firm at a discount of around 20% from its current market value. This move is seen as a strategic decision by Alibaba to reallocate its resources and focus on its core e-commerce business, which has seen tremendous growth in recent years.

    The sale of Sun Art Retail Group is expected to be finalized in the coming months, with Alibaba set to make a significant profit from the transaction. This move is likely to have a positive impact on Alibaba’s financial performance and will allow the company to further invest in its e-commerce operations.

    Overall, this sale is a strategic move by Alibaba to streamline its operations and focus on its core business, while also maximizing its profits from its investment in Sun Art Retail Group. It will be interesting to see how this decision plays out in the coming months and what impact it will have on Alibaba’s overall business strategy.

    Tags:

    Alibaba, Sun Art, Buyout Firm, China, Discount, Acquisition, Retail Industry, E-commerce, Investment, Business News

    #Alibaba #Sell #Chinas #Sun #Art #Buyout #Firm #Big #Discount

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