Alibaba issued $10.2 billion in new shares, causing a market sell-off that overestimated the actual dilution impact, which is only about 0.13% on its ADR price. The company’s cloud business is growing rapidly with 45% year-over-year revenue growth and a 12% EBITA margin, while AI-related revenue has seen triple-digit growth for 12 consecutive quarters. The key question is whether Alibaba can convert its significant AI investments into strong returns, which the market currently undervalues. Overall, Alibaba remains a strong buy based on its growth potential and manageable dilution.
Alibaba reported a mixed quarter with sharply lower profits and negative free cash flow due to heavy capital expenditures, which rose 75% to RMB67.68 billion. However, AI Cloud and Compute Services revenue surged 45% year-on-year, with AI product rev...
Alibaba Group is raising HK$80 billion through equity to significantly increase its investments in AI and cloud computing. Despite concerns about dilution and monetization risks, management expects faster returns and improved gross margins within 2-3...
Alibaba's stock fell 8% following disappointing Q2 results and further declined after announcing a $10.2 billion investment to expand its AI capabilities. Despite the market's negative reaction, analysts argue that Alibaba's AI spending is still mode...
XPeng's stock fell 7% following a Q2 revenue miss and a softer Q3 revenue forecast, despite a record $6.3 billion valuation for its humanoid robotics unit. The company reported Q2 revenue of $2.91 billion, up 8% year-over-year but below expectations,...
Alibaba announced a record HK$80 billion ($10.2 billion) share sale in Hong Kong following CFO Toby Xu's statement of a strong net cash position of $30.7 billion excluding long-term debt. Investor Michael Burry exited his Alibaba position, citing con...
