Alibaba's Stock Surges Amid AI Leadership and E-commerce Growth

In a positive turn for Alibaba (NYSE: BABA), the company is leading advancements in AI while improving its e-commerce business. Strong EBITDA growth and expectations of revenue surge position it favorably in the current market.

Date: 23-03-2025

AI Rating: 7

Strong Performance in AI and E-commerce: Alibaba is showcasing significant progress in its AI capabilities, particularly with its Qwen 2.5 model, which outperforms competitors. Revenue from Cloud Intelligence, which includes AI, experienced a healthy growth of 13%, and segment-adjusted EBITDA soared by 33% last quarter.

Turnaround in E-commerce: Alibaba's investment in its e-commerce sector is beginning to show results, with a 5% increase in overall segment revenue related to its Tmall and Taobao platforms. Notably, third-party revenue climbed 9% despite previous setbacks due to economic pressures.

Emerging Business Growth: The International commerce segment saw a noteworthy revenue increase of 32%. Though still posting negative EBITDA, management's expectation for profitability in this segment may positively impact future earnings.

Attractively Valued Stock: Despite the stock's more than 60% increase this year, Alibaba is still regarded as undervalued, trading at a forward P/E ratio of approximately 15, significantly lower than Amazon's valuation, presenting an opportunity for potential investors.

Stocks: BABA AMZN AAPL META