Company Commentary on Alibaba Amid Changing China Sentiment
"Alibaba, everybody was anti-China for the longest time. Chinas awful. Chinas terrible. I look at it going, China loves money. They love their middle class growing and becoming rich. And their rich love being richer. Yeah, theyre communists, but I just look at it going 20, 30 years down the road, will China be more free and wealthier than it is today? Yes, I think they will. So, the question becomes, is Alibaba going to benefit from that? Yes, they will. So, can I pay a reasonable price for Alibaba? Well, Alibaba is the biggest gainer out of all these companies this year. It is up huge. So, that has changed whether its a good investment or not. We will take a look at that at some point."
The speaker provides a contrarian view on Alibaba, countering longstanding negative sentiment towards China by emphasizing the nations growing wealth and consumer class. He suggests that Alibaba, having been the biggest gainer of the year, may benefit in the long run if its price is reasonable.
Bullish AI Catalyst for Alibaba
"Alibaba was upgraded by both Morgan Stanley and Morningstar about their excitement of their planned AI capex spending that they pledged last week. Morgan Stanley looking very positive on their cloud revenue. And Morningstar is saying that the shares are undervalued. And that's quite a statement given the shares have already rallied 50 percent this month alone."
Morgan Stanley and Morningstar upgrades on Alibaba underscore a bullish sentiment driven by their planned AI capital expenditure. Despite a significant rally this month, analysts suggest the stock remains undervalued, reflecting strong potential in Alibaba's cloud revenue and AI initiatives.
Cautionary Commentary on Alibaba (BABA)
"But I'll tell you, those three declines before today, actually pretty orderly. The stock did give up a lot of ground, but it managed to close off lows most of those days. Came down to the 200 level today and found support, at least for now, at that round number. ... If you bought it around the 200 level, I think you definitely would have wanted to be taking some profits."
The discussion highlights that Alibaba (BABA) has experienced a significant pullback (around 22% off its highs) yet found support near the 200 level. The commentary suggests that investors, especially those who entered at higher levels, might consider taking partial profits rather than waiting for a deeper test of its moving averages.
Commentary on Alibaba (BABA) Amid AI Catalyst
"Alibaba, once it broke above $120, was off to the races. It's pumping 8% in pre-market on strong AI spend, incorporating NVIDIA's robotic software."
The host offers commentary on Alibaba, noting its breakout above $120 and subsequent pre-market surge driven by AI-related initiatives. Despite the bullish technical move, he expresses caution given the broader concerns in Chinese tech.
Alibaba Bets Big on AI, Posts Strong Intraday Rally
"Were seeing shares soaring, and this is after it hiked its AI budget past $50 billion. Stock is up as much as 10%. The CEO is saying that he anticipates overall investment in AI accelerating to some $4 trillion worldwide over the next five years."
Alibaba has significantly increased its AI budget to over $50 billion, fueling a strong intraday surge and reaching its highest levels since October 2021. The CEO s optimistic forecast about a $4 trillion global AI investment over the next five years underscores a robust bullish outlook for the company.
Alibaba Accelerates AI Investment
"Yes, yet another tech company to pledge more AI infrastructure investment. The latest one is Alibaba out of China, pledging up to $50 billion of AI infrastructure spending. And it feels like that enthusiasm is carrying over into the earnings we saw overnight from Micron Technology."
Alibaba is committing to a massive AI infrastructure investment, pledging up to $50 billion. This move, combined with their integration of NVIDIA robotics software, has driven a nearly 10% pre-market surge, reflecting strong market enthusiasm for its AI ambitions.