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Alibaba share price rises - successful quarter and AI strategy

The Alibaba share $BABA (+5,86 %) recently made an impressive leap. Investors reacted euphorically after the presentation of the quarterly figures for the December quarter of 2024. Profit rose to 6.7 billion US dollars, a huge increase compared to 1.3 billion in the previous year. 📈

Turnover increased by eight percent to 38.4 billion US dollars, exceeding analysts' expectations. These positive figures are not just a snapshot, but show that Alibaba is growing strongly in its main business areas, particularly in international e-commerce.

It is also interesting to note that Alibaba's new AI strategy is bearing fruit. The focus on user experience could be crucial for future success. What do you think? Is the AI strategy the key to Alibaba's long-term growth? 🤔

1 Comentario

Peter A.@Kamahl_

I got into Alibaba in 2022, bought almost every quarter and the stock is now my largest position. It's a shame that the price has risen so much. I had hoped that the stock would bob around at 80-100$ for a few more years. Management will probably now curb the buyback program, which was extremely efficient at <$100. Capital allocation has been pretty good the last two years in this regard. Apparently the demand for the cloud business seems to be very strong, which is why CapEx will increase significantly over the next few years. This will hit cash flow hard, I suspect it will drop to $5-10bn, which is okay if the cloud growth story fits. This should cover the dividend (I would rather invest the 3 bn than pay it out), but share buybacks are probably roughly off the table. This is clearly copying the Amazon strategy and jumping on the cloud bandwagon, which is more profitable

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