Alibaba Launches Happy Horse AI Model in Beta
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy BABA?
Source: seekingalpha
- Happy Horse AI Model Launch: Alibaba announced the rollout of the Happy Horse AI model in beta on Monday, allowing global creators to access it via the official website or API service on Alibaba Cloud Model Studio, marking a significant step in the company's AI strategy.
- Market Reaction: Despite the excitement surrounding the Happy Horse AI model, Alibaba's shares fell in premarket trading, indicating a lack of immediate investor confidence in the technology's potential impact on the company's performance.
- Global Creator Access: The launch of Happy Horse 1.0 enables creators worldwide to leverage this AI tool, which is expected to drive innovation and efficiency in content creation, thereby enhancing Alibaba's competitiveness in the digital creation space.
- Strategic Implications: This release represents a crucial advancement in Alibaba's AI capabilities and may provide new growth opportunities for the company in the future, particularly as China increasingly prioritizes artificial intelligence development.
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Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise
15 Analyst Rating
15 Buy
0 Hold
0 Sell
Strong Buy
Current: 130.430
Low
180.00
Averages
203.09
High
230.00
Current: 130.430
Low
180.00
Averages
203.09
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through four segments. The Alibaba China E-commerce Group segment is mainly engaged in E-commerce business, including operating Tmall Supermarket and Tmall Global, providing customer management services, product sales, as well as logistics services. It also operates quick commerce business such as Taobao Instant Commerce and Ele.me, as well as the China commerce wholesale business through 1688.com. The Alibaba International Digital Commerce Group segment is mainly engaged in international commerce retail and wholesale business, operating platforms such as AliExpress, Trendyol, Lazada and Alibaba.com. The Cloud Intelligence Group segment mainly provides public and non-public cloud services. The Other segments primarily include the operations of Freshippo, Cainiao, Alibaba Health and other business.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Earnings Report Schedule: Alibaba Group will announce its unaudited financial results for the quarter and fiscal year ending March 31, 2026, before the U.S. market opens on May 13, 2026, highlighting the company's commitment to transparency and investor communication.
- Conference Call Details: A conference call will take place on the same day at 7:30 a.m. U.S. Eastern Time, requiring all participants to pre-register, ensuring effective information dissemination and smooth access for attendees.
- Live Webcast Availability: The earnings conference call will be accessible via a live webcast, allowing participants to engage through Alibaba's Investor Relations website, enhancing information accessibility and transparency.
- Investor Relations Website: Alibaba's Investor Relations website will publish the earnings release and accompanying slides on the day of the conference, demonstrating the company's ongoing commitment to investor engagement and information sharing.
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- Surge in Demand: The demand for Huawei's Ascend 950 AI chips has surged, primarily driven by DeepSeek's launch of V4 AI models that rely on Huawei's chips, prompting major tech companies like Alibaba, ByteDance, and Tencent to actively seek new orders, indicating a strong market appetite for high-performance AI chips.
- Intensified Market Competition: Huawei's 950PR chip outperforms Nvidia's H20 chip, although it still lags behind the H200 chip; however, due to U.S. export restrictions on advanced chips, Huawei's competitive edge in the Chinese market is significantly enhanced, potentially impacting Nvidia's market share.
- Production Plans: Huawei plans to ship approximately 750,000 units of the 950PR chip in 2023, with mass production expected to start in April and full-scale shipments beginning in the second half of 2026, which will help meet the growing market demand.
- Pricing Expectations: DeepSeek anticipates that V4-Pro pricing could decline significantly in the second half of 2026 as Huawei's Ascend 950 supernodes ship at scale, although current production remains constrained due to the tight supply of high-end homemade AI chips.
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- IPO Potential: SpaceX aims to raise $75 billion with a valuation projected between $1.75 trillion and $2 trillion, which, if successful, would surpass Saudi Aramco's $29.4 billion IPO record set in 2019, indicating strong market interest in the space economy.
- Historical Lessons: Despite the excitement surrounding SpaceX's IPO, historical data shows that since 1999, only Visa has seen its stock price rise six months post-IPO, while five other large IPOs experienced declines of 8% to 38%, suggesting that investor sentiment may cloud judgment.
- Valuation Challenges: SpaceX's valuation may fall within a high double-digit or low triple-digit price-to-sales (P/S) ratio, yet historically, companies at the forefront of technology struggle to maintain P/S ratios above 30, posing risks for investors.
- Tech Bubble Risks: History indicates that every emerging technology over the past 30 years has faced bubble-bursting events; although demand for AI and space infrastructure is surging, SpaceX's sales and profits still require time to optimize, presenting significant risks for early investors.
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- IPO Potential: SpaceX confidentially filed for its IPO on April 1, aiming to raise $75 billion with a valuation of up to $2 trillion, which, if successful, would set a record for the largest IPO in Wall Street history, reflecting strong market confidence in its growth prospects.
- Historical Challenges: Despite investor enthusiasm, many high-profile IPOs over the past 27 years have struggled post-debut, with only Visa seeing a price increase six months after going public, while others like Facebook and Alibaba faced declines of 8% to 38%, adding uncertainty to SpaceX's IPO outlook.
- Significant Valuation Risks: SpaceX's sales are reported between $15 billion and $16 billion, but its high price-to-sales ratio, potentially exceeding 30, may be unsustainable, especially as historically, companies at the forefront of technology trends often fail to maintain such valuations, which could impact investor confidence.
- Bubble Risk Warning: History shows that many emerging technologies experience bubble bursts in their early stages; although demand for AI and space infrastructure is surging, SpaceX's sales and profits still require time to optimize, necessitating caution from early investors regarding potential risks.
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- Portfolio Adjustment: In Q1 2026, O'Keefe Stevens Advisory sold its positions in Alibaba (BABA), Fannie Mae common, BMW (BMWKY), and Mercedes-Benz (MBGAF), reflecting a cautious outlook on market conditions that may impact these companies' stock performance.
- Position Closure: The fund also closed its position in Tri Pointe Homes (TPH) due to the announced sale of the business, which could lead to decreased liquidity for the company and affect its future financing capabilities.
- New Investment Initiatives: Conversely, O'Keefe Stevens Advisory initiated new positions in Baxter International (BAX) and Weyerhaeuser (WY), indicating confidence in the growth potential of these companies, which may provide new revenue streams for its portfolio.
- Increased Holdings: The fund further strengthened its position in Perrigo (PRGO), suggesting optimism regarding the company's competitive edge and future performance, potentially enhancing its market position within the relevant industry.
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