I entered Alibaba in February 2024 at €68, convinced that I was facing one of those opportunities that the market offers from time to time. The stock was full of doubts, punished by skepticism towards the big Chinese technology companies, and yet I saw a company with a potential that, in my opinion, was far from being reflected in the price. From the very first moment I set a selling target of 150 €, not because I was looking for a lucky break, but because it seems to me a reasonable level for a company of this caliber.
What attracted me most about Alibaba was that mix of strength and resilience. Despite regulatory pressures and fierce competition, the company maintains an ecosystem that goes far beyond just online sales: e-commerce, logistics, financial services and a huge user base that has become part of everyday life in China. That integration is not easy to replicate and is, in my opinion, one of the reasons why Alibaba is still standing, even when the market seems bent on underestimating it.
But if there's one thing that gives me confidence going forward, it's its commitment to the cloud and artificial intelligence. We are not talking about an add-on, but a strategic move that could redefine the company. The investment it is putting into infrastructure and new technologies is huge, and although the results are not immediately visible, the feeling is that Alibaba is paving the way to become a key player in sectors that will shape the future. I know that competition with Amazon, Microsoft or Google is titanic, but the advantage of having a huge domestic market and the ability to invest in the long term are factors that should not be overlooked.
I am aware that the path will not be linear. There will be jolts, headlines that generate fear and days when it seems that the price retreats more than necessary. But it is precisely in those phases that I remind myself why I invested. My horizon is three years away and, in that time frame, I am confident that the company will prove with facts that its strategy works. I don't need the market to become euphoric, it's enough for me to reprice Alibaba in a way that is more consistent with what it stands for.
Investing in Alibaba, in the end, is a matter of patience. I don't expect explosive growth every quarter, but rather confirmation that the company continues to adapt, that it consolidates its cloud, that it turns artificial intelligence into a profitable business, and that it maintains its leadership in e-commerce. When that consolidates, the price should adjust itself.
That's why my €150 target is not a dream or a risky bet. It is simply the level at which I believe the market will eventually recognize what Alibaba already is and what it is on its way to becoming. And when that time comes, I will not experience it as a surprise, but as the natural consequence of having been patient enough.
