Macquarie ups rating on PDD, BABA under Chinese internet picks, lists JD, DIDIY favorite
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 07 2024
0mins
Should l Buy BABA?
Source: SeekingAlpha
Macquarie Equity Research Updates: Macquarie Equity Research has made significant updates to its coverage of U.S.-listed Chinese Internet stocks, highlighting opportunities in local services, ecommerce, and travel sectors.
Investment Recommendations: The firm identifies JD.com as a key player in these sectors, suggesting it offers "quality at discount" for investors.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy BABA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 138.590
Low
180.00
Averages
203.09
High
230.00
Current: 138.590
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.
Alibaba Accelerates AI Investments, Shares Up 14%
- Accelerated AI Investments: Alibaba's AI investments nearly doubled in the March quarter to around 20 billion yuan ($2.93 billion), indicating a strong commitment to maintaining market dominance in AI.
- Strong Stock Performance: Alibaba's Hong Kong-listed shares have surged over 14% in April, on track for their best month since January, reflecting positive market sentiment towards its AI strategy.
- New Model Launch: The recently announced Happy Oyster model can create 3D environments for gaming, with analysts suggesting that this world model outperforms existing chatbot models in replicating the real world, potentially attracting more enterprise clients.
- Intensified Market Competition: The successful launch of the HappyHorse video generation model may intensify competition with ByteDance and Kuaishou, with analysts predicting it will lead to higher cloud revenue opportunities for Alibaba, further solidifying its position in the AI market.
See More
SpaceX Plans 2026 IPO, Potentially Largest in History
- Massive IPO Potential: SpaceX is planning an IPO in 2026 with a target valuation of $1.75 trillion and a capital raise of $75 billion, which, if successful, would make it the largest IPO in history, surpassing Tesla and becoming the eighth-largest publicly traded company in the U.S.
- Strong Financial Performance: Last year, SpaceX generated up to $16 billion in revenue and $8 billion in profit, indicating its profitability has surpassed that of Tesla, thereby attracting investor interest in its future growth potential.
- Vast Market Opportunities: McKinsey estimates that the global space economy could reach $1.8 trillion by 2035, while PwC analysts predict that AI will create over $15 trillion in global economic value by 2030, highlighting SpaceX's strategic significance in these sectors.
- Historical Lessons Caution: Despite SpaceX's bright prospects, historical data shows that large IPOs typically lose an average of 10% of their value six months post-IPO; if SpaceX follows this trend, it could face a market value loss of up to $175 billion, necessitating careful risk assessment by investors.
See More
SpaceX Plans to Launch Historic Largest IPO
- Massive IPO Potential: SpaceX is preparing for an IPO with a projected valuation of $1.75 trillion and a capital raise of $75 billion, which, if successful, would make it the largest IPO in history, surpassing Tesla and becoming the eighth-largest publicly traded company in the U.S.
- Profitability Surge: SpaceX is expected to achieve profitability by 2025, with reported revenues of $16 billion and profits of $8 billion last year, indicating strong growth potential in the space infrastructure market.
- Vast Market Opportunities: The global space economy is projected to reach $1.8 trillion by 2035, while artificial intelligence is expected to create over $15 trillion in economic value by 2030, positioning SpaceX at the heart of these rapidly growing markets.
- Historical Caution: Despite the bright prospects for SpaceX, history shows that large IPOs typically lose an average of 10% of their value six months post-IPO, urging investors to carefully assess potential risks to avoid repeating past mistakes.
See More
ALIBABA RELEASES QWEN3.6-35B-A3B AI MODEL AS OPEN SOURCE
Alibaba's Open Source Initiative: Alibaba has launched an open-source version of its AI model, Qwen 3.6-35B, aimed at fostering collaboration and innovation in the AI community.
AI Model Features: The Qwen model is designed to enhance various applications, providing developers with tools to build and integrate AI solutions more effectively.
Community Engagement: By making the model open-source, Alibaba encourages developers and researchers to contribute to its development and improvement, promoting a collaborative environment.
Impact on AI Development: This initiative is expected to accelerate advancements in AI technology, allowing for broader access and utilization of sophisticated AI capabilities across different sectors.
See More
Fines Imposed on Companies Such as PDD, Meituan, Taobao, Tmall, and JD.com - Xinhua
- Companies Fined: Several companies, including PDD, Meituan, Taobao, Tmall, and JD.com, have been fined for regulatory violations.
- Regulatory Actions: The fines are part of ongoing efforts by authorities to enforce compliance and maintain fair market practices.
See More
Alibaba Launches New AI Model to Expand Gaming Market
- New AI Model Launch: Alibaba has unveiled an AI model called 'Happy Oyster' that can create 3D environments and interactive videos, marking a significant expansion in its AI capabilities aimed at directly competing with Tencent and commercializing the technology.
- Diverse Application Scenarios: This model can be utilized for producing films, video content, and games, showcasing Alibaba's strategic positioning in the digital entertainment sector, which is expected to attract more users and developers.
- Global Ranking Leadership: The 'Happy Horse' video AI model released last week ranked at the top globally, indicating Alibaba's technological prowess and market competitiveness, which may further enhance its influence in the AI market.
- Intensified Market Competition: As Alibaba increases its investment in AI technology, particularly in gaming and video, it is likely to challenge Tencent's market share, driving innovation and altering the competitive landscape across the industry.
See More
Alibaba Accelerates AI Investments, Shares Up 14%
- Accelerated AI Investments: Alibaba's AI investments nearly doubled in the March quarter to around 20 billion yuan ($2.93 billion), indicating a strong commitment to maintaining market dominance in AI.
- Strong Stock Performance: Alibaba's Hong Kong-listed shares have surged over 14% in April, on track for their best month since January, reflecting positive market sentiment towards its AI strategy.
- New Model Launch: The recently announced Happy Oyster model can create 3D environments for gaming, with analysts suggesting that this world model outperforms existing chatbot models in replicating the real world, potentially attracting more enterprise clients.
- Intensified Market Competition: The successful launch of the HappyHorse video generation model may intensify competition with ByteDance and Kuaishou, with analysts predicting it will lead to higher cloud revenue opportunities for Alibaba, further solidifying its position in the AI market.
See More
SpaceX Plans 2026 IPO, Potentially Largest in History
- Massive IPO Potential: SpaceX is planning an IPO in 2026 with a target valuation of $1.75 trillion and a capital raise of $75 billion, which, if successful, would make it the largest IPO in history, surpassing Tesla and becoming the eighth-largest publicly traded company in the U.S.
- Strong Financial Performance: Last year, SpaceX generated up to $16 billion in revenue and $8 billion in profit, indicating its profitability has surpassed that of Tesla, thereby attracting investor interest in its future growth potential.
- Vast Market Opportunities: McKinsey estimates that the global space economy could reach $1.8 trillion by 2035, while PwC analysts predict that AI will create over $15 trillion in global economic value by 2030, highlighting SpaceX's strategic significance in these sectors.
- Historical Lessons Caution: Despite SpaceX's bright prospects, historical data shows that large IPOs typically lose an average of 10% of their value six months post-IPO; if SpaceX follows this trend, it could face a market value loss of up to $175 billion, necessitating careful risk assessment by investors.
See More
SpaceX Plans to Launch Historic Largest IPO
- Massive IPO Potential: SpaceX is preparing for an IPO with a projected valuation of $1.75 trillion and a capital raise of $75 billion, which, if successful, would make it the largest IPO in history, surpassing Tesla and becoming the eighth-largest publicly traded company in the U.S.
- Profitability Surge: SpaceX is expected to achieve profitability by 2025, with reported revenues of $16 billion and profits of $8 billion last year, indicating strong growth potential in the space infrastructure market.
- Vast Market Opportunities: The global space economy is projected to reach $1.8 trillion by 2035, while artificial intelligence is expected to create over $15 trillion in economic value by 2030, positioning SpaceX at the heart of these rapidly growing markets.
- Historical Caution: Despite the bright prospects for SpaceX, history shows that large IPOs typically lose an average of 10% of their value six months post-IPO, urging investors to carefully assess potential risks to avoid repeating past mistakes.
See More
ALIBABA RELEASES QWEN3.6-35B-A3B AI MODEL AS OPEN SOURCE
Alibaba's Open Source Initiative: Alibaba has launched an open-source version of its AI model, Qwen 3.6-35B, aimed at fostering collaboration and innovation in the AI community.
AI Model Features: The Qwen model is designed to enhance various applications, providing developers with tools to build and integrate AI solutions more effectively.
Community Engagement: By making the model open-source, Alibaba encourages developers and researchers to contribute to its development and improvement, promoting a collaborative environment.
Impact on AI Development: This initiative is expected to accelerate advancements in AI technology, allowing for broader access and utilization of sophisticated AI capabilities across different sectors.
See More
Fines Imposed on Companies Such as PDD, Meituan, Taobao, Tmall, and JD.com - Xinhua
- Companies Fined: Several companies, including PDD, Meituan, Taobao, Tmall, and JD.com, have been fined for regulatory violations.
- Regulatory Actions: The fines are part of ongoing efforts by authorities to enforce compliance and maintain fair market practices.
See More
Alibaba Launches New AI Model to Expand Gaming Market
- New AI Model Launch: Alibaba has unveiled an AI model called 'Happy Oyster' that can create 3D environments and interactive videos, marking a significant expansion in its AI capabilities aimed at directly competing with Tencent and commercializing the technology.
- Diverse Application Scenarios: This model can be utilized for producing films, video content, and games, showcasing Alibaba's strategic positioning in the digital entertainment sector, which is expected to attract more users and developers.
- Global Ranking Leadership: The 'Happy Horse' video AI model released last week ranked at the top globally, indicating Alibaba's technological prowess and market competitiveness, which may further enhance its influence in the AI market.
- Intensified Market Competition: As Alibaba increases its investment in AI technology, particularly in gaming and video, it is likely to challenge Tencent's market share, driving innovation and altering the competitive landscape across the industry.
See More
