Alibaba Stock Rises 4% on AI Chip Division Restructuring Plans
Stock futures are higher as confidence returns to risk assets and markets rebound sharply from a bout of volatility earlier in the week that saw major indexes plunge as investors reacted to heightened trade-war fears tied to the threat of tariffs on European goods. The turnaround followed comments from President Donald Trump signaling a retreat from those tariff plans and outlining a framework agreement involving Greenland with NATO partners.Gold and silver prices have pulled back from recent records as safe-haven demand eases on the reduced risk of a broader trade conflict, and oil prices stabilized amid calmer macro conditions.In pre-market trading, S&P 500 futures rose 0.58%, Nasdaq futures rose 0.91% and Dow futures rose 0.40%.Check out this morning's top movers from around Wall Street, compiled by The Fly.HIGHER -Alibabaup 4% after Bloombergthat the company is planning to restructure its AI chipmaking division T-Head ahead of a potential IPOGameStopup 3% after disclosing that chairman Ryan Cohen increased his stake in the company to 9.3%, which represents over 42.08M sharesUP AFTER EARNINGS -Interparfumsup 4%Life Time Groupup 3%CACIup 2%DOWN AFTER EARNINGS -Abbottdown 7%McCormickdown 6%Mobileyedown 6%GE Aerospacedown 3%Huntington Bancsharesdown 3%Cadence Bankdown 3%Procter & Gambledown 1%Freeport-McMoRandown 1%
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- AUM Decline: Eminence Capital's assets under management fell from approximately $6.54 billion in Q4 2024 to about $6.23 billion in Q4 2025, indicating a decline in investor confidence and increased market volatility, which may impact future investment strategies and returns.
- Concentration Changes: The number of holdings decreased to 39, reflecting a concentrated investment in information technology, consumer discretionary, and communication sectors, particularly with Amazon (AMZN) increasing its allocation to 1.47 million shares, up 59% year-over-year, valued at nearly $340 million, signaling continued optimism in the e-commerce sector.
- New Investments and Exits: New additions in 2025 include Meta Platforms (META) and UnitedHealth Group (UNH), while the fund completely exited stakes in Uber (UBER) and MGM (MGM), demonstrating a focus on emerging markets and a cautious approach to risk assets.
- Alibaba Stake Reduction: Eminence Capital reduced its stake in Alibaba (BABA) from 1.74 million shares to 825,700 shares, a 53% decrease, reflecting a cautious outlook on the company's future prospects, which may affect its strategic positioning in the Chinese market.
- Intensifying US-China Competition: Microsoft President Brad Smith highlighted at the AI Impact Summit in New Delhi that while the US has advantages in chip access and technological innovation, Chinese government subsidies could significantly alter the competitive landscape, particularly in developing markets.
- Impact of Chinese Subsidies: Smith noted that the Chinese government supports its AI firms through multi-billion-dollar national investment funds and energy vouchers, a strategy that previously enabled companies like Huawei and ZTE to disrupt the telecommunications market, forcing some American and European firms into a defensive position.
- Global Data Center Presence: He emphasized that Chinese firms like Huawei and Alibaba have established data centers worldwide, and they may continue to leverage state subsidies to enhance their market competitiveness, posing challenges for companies in other countries.
- Microsoft's Investment Plans: Microsoft aims to invest $50 billion by 2030 to promote AI development in the
- Intensifying US-China Competition: Microsoft President Brad Smith highlighted that American companies face competition from Chinese government subsidies, particularly as Chinese firms leverage multi-billion-dollar national investment funds and energy vouchers, which could impact US market share in AI.
- Attractiveness of Chinese AI Models: Smith noted that China's lower-cost AI models could be more appealing in developing nations, a trend that may diminish the competitive edge of US firms globally, especially as their advantages in technology innovation and chip access could be undermined.
- Historical Lessons: Reflecting on China's success in the telecommunications market, Smith pointed out that state funding and support helped companies like Huawei and ZTE rise, leading to some American and European firms like Ericsson and Nokia being forced into a defensive position, emphasizing the profound impact of subsidies on market competition.
- Microsoft's Investment Plans: Microsoft aims to invest $50 billion by 2030 to promote AI development in the
- Portfolio Restructuring: Billionaire hedge fund manager Daniel Loeb reshuffled his Third Point LLC portfolio in Q4 2025, adding several new consumer and international investments, indicating a pursuit of market diversification.
- Reduced Mega-Cap Exposure: In the latest Form 13F filing, Loeb trimmed stakes in select mega-cap and semiconductor names, reflecting a cautious stance towards these sectors, possibly due to concerns over market volatility.
- New Buy Highlights: Among the new acquisitions, Loeb focused on consumer goods and international markets, likely aiming to capture opportunities arising from global economic recovery and enhance the growth potential of his portfolio.
- Regulatory Transparency: Loeb's portfolio changes are disclosed through the 13F filing as required by the U.S. Securities and Exchange Commission, increasing transparency for the hedge fund and helping investors better understand its investment strategies and market outlook.
- Chipotle Investment: Daniel Loeb's Third Point acquired a position worth over $174 million in Chipotle during Q4 2025, despite the stock's decline of over 5% in the last quarter, with analysts maintaining buy ratings and an estimated 18% upside potential.
- Spotify Position: Loeb invested $58 million in Spotify in the same quarter, which saw a drop of more than 16%, yet finished the year nearly 30% higher, indicating market confidence in its growth, with analysts suggesting a potential increase of over 42%.
- Union Pacific Stake Increase: Loeb also more than doubled his position in Union Pacific, raising its value to over $418 million, making it the fund's fifth-largest holding, reflecting a positive outlook on the railroad sector despite challenging market conditions.
- New and Reduced Positions: In addition to increasing stakes, Loeb established new positions in Constellation Energy and Alibaba while selling off shares in Flutter, Meta, and Talen Energy, demonstrating a strategic adjustment of his portfolio amid market volatility.
- Stock Rebound: Amazon (AMZN) closed at $201.15 on Tuesday, up 1.19%, marking the end of a nine-day losing streak driven by concerns over its $200 billion AI investment plan, restoring market confidence in its growth prospects.
- Surge in Trading Volume: The trading volume reached 67.9 million shares, approximately 43% above the three-month average, indicating heightened investor interest and confidence in Amazon's future developments.
- Significant AWS Contribution: Amazon Web Services (AWS) saw a 24% revenue increase in Q4, contributing $128 billion to Amazon's total $717 billion revenue last year, underscoring its strong position in the cloud services market.
- Investment Outlook Analysis: Despite the massive capital expenditure plan, investors are weighing Amazon's growth potential against AWS's profitability, reflecting trust in the company's long-term strategic direction.











