Alibaba Group (BABA) presents a compelling investment opportunity. Its stock, trading at a forward P/E of 11.5, is undervalued compared to peers like Amazon, despite a 50%+ surge in 2025. Alibaba dominates China’s e-commerce market with Taobao and Tmall, while expanding globally through AliExpress and Trendyol. Its cloud division, a leader in China, reports triple-digit AI revenue growth, bolstered by the Qwen AI model. With $51.9 billion in net cash, robust share buybacks, and a stabilizing Chinese economy, Alibaba offers strong growth potential. However, regulatory risks and competition persist, requiring careful consideration for long-term investors.
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