Alibaba: Nothing Is Over Yet

Summary:

• Alibaba reshuffled its commerce business recently, as it aims to reshape its growth opportunity in international markets.
• China’s economic growth prospects in 2025 have been upgraded, which should provide a timely boost to BABA’s dip-buying sentiments.
• Alibaba faces market share losses in China while navigating a monumental shift in its international business.
• The AI growth opportunity hasn’t translated to solid performance in its cloud business, as Chinese companies have remained cautious.
• However, Alibaba’s turnaround is far from over, and its battered valuations indicate that much pessimism is likely priced in.

I think it’s fair to say that investors in Alibaba Group Holding Limited (NYSE:BABA) have seen the stock go “nowhere” over the past month, as the market digested mixed signals from China’s policymakers. For China’s leading

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, GOOGL, PDD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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