Added to YB: 2026-08-28
Pitch date: 2026-08-26
BABA [bullish]
Alibaba Group Holding Limited
-1%
current return
Author Info
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Company Info
Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses in the People's Republic of China and internationally.
Market Cap
$1.8T
Pitch Price
$117.49
Price Target
N/A
Dividend
0.88%
EV/EBITDA
17.45
P/E
27.07
EV/Sales
1.71
Sector
Broadline Retail
Category
growth
Alibaba - Funding the Frontier
BABA (added to position): Alibaba's $10.2bn Hong Kong follow-on sent shares down ~8% on ~3.5% EPS dilution, but the raise preserves balance-sheet and debt capacity for its AI buildout. Q2 capex rose 75% to RMB68bn versus RMB23bn of operating cash flow; external AI Cloud revenue grew 45%, margins reached 11.6% and AI product revenue has grown at triple digits for 12 straight quarters. Servers repay their cost in roughly three years, potentially falling toward 2.5 years, versus five-year depreciation. With ~$70bn of cash/investments versus $39bn of debt, the key risks are weak China e-commerce, widening AI Labs losses and unproven capex returns.
Read full article (10 min)