Alibaba Nears $120! Sell the Fact or Short Squeeze May Follow the Partnership Buzz?
On February 11, Jack Ma was spotted at $Alibaba(BABA)$ campus, and Alibaba's stock hit a new recent high after the market opened, surpassing its pre-National Day high from 2024. Positive news has been pouring in for Alibaba lately.
Alibaba Confirms $Apple(AAPL)$ Partnership: Will Stock Keep Rising After a 39% Surge or Face a Pullback?
On February 13, during the World Governments Summit 2025 in Dubai, Alibaba co-founder and Chairman Joseph C. Tsai responded to rumors about a potential collaboration between Alibaba and Apple. Reports suggest that Apple, after evaluating several Chinese tech giants like Tencent, Alibaba, and ByteDance, ultimately chose Alibaba as its partner.
Even before the official confirmation, speculation about the partnership had already driven Alibaba's price higher. In fact, BABA had surged 39% YTD. Its rally started even before Apple rumors surfaced.
Alibaba’s valuation had been at historically low levels following a prolonged downturn. As the market began hyping the DeepSeek AI concept, investors also started to reassess Alibaba’s AI assets.
However, some caution that this could be a classic "sell the fact" scenario, where the stock stalls or pulls back after the news is confirmed, especially after such a rapid increase.
Morgan Stanley and UBS Remain Bullish on China's Tech Revaluation
Morgan Stanley reported that global investors are rethinking China's investment potential in the tech and AI sectors, leading to more fundamental-driven inflows. The firm highlighted that DeepSeek recently launched a cost-effective large language model (LLM) that rivals those from Google, OpenAI, and Meta in performance but at significantly lower costs—an achievement seen as a major factor behind the recent rally in Chinese equities.
UBS echoed this sentiment, stating that China's AI-driven stock market surge may only be halfway through its potential run. The bank noted that favorable liquidity conditions and low interest rates could continue fueling revaluation for AI-related stocks.
"Based on past trends during the 4G, 5G, and cloud computing booms, such uptrends often last one to two years. We believe AI-related stocks could outperform the broader market by 50% to 100% during this cycle," UBS commented.
Questions to discuss:
Will you take profit of $Alibaba(BABA)$?
How much higher would Alibaba go in this bullish trend?
Are you confident in China asset revaluation?
Leave your comments and also post to win tiger coins~
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Alibaba’s valuation had been at historically low levels following a prolonged downturn. As the market began hyping the DeepSeek AI concept, investors also started to reassess Alibaba’s AI assets.
However, some caution that this could be a classic "sell the fact" scenario, where the stock stalls or pulls back after the news is confirmed, especially after such a rapid increase.
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Will you take profit of $Alibaba(BABA)$?
How much higher would Alibaba go in this bullish trend?
Are you confident in China asset revaluation?
Leave your comments and also post to win tiger coins~
However, after such a rapid run-up, a short-term pullback is possible due to profit-taking. If liquidity conditions remain favorable and China continues its AI push, Alibaba could still have significant upside from here.
As for China’s asset revaluation, I believe we’re still in the early stages. The market had been overly pessimistic on Chinese tech, but now, with renewed investor confidence and improving fundamentals, the sector is catching up. AI is a global game-changer, and China’s key players, including Alibaba, are well-positioned to capitalize on this transformation.
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In the financial report that Alibaba is set to release on February 20, the scale of investment in AI and cloud computing Capex will become the focus of market attention, which means how Alibaba's management plans to use funds may influence the direction of Chinese tech stocks.
It is hard to predict how much higer can Alibaba go, taking profits early might cause you to miss out on the gains. Personally I am invested in Alibaba. I do believe the narrative that China is uninvestable will change in due course.
Great