Alibaba is a Chinese domestic champion, but the AI investment cycle is taking its toll. With the balance sheet being pulled in multiple directions and Alibaba now raising equity capital, investors are being asked to believe strongly in the full-stack AI side of the business.
Alibaba has some engines of growth, but there’s a slowdown in eCommerce to worry about. Capex up 75% and GAAP net income down 75% isn’t the combination investors want to see!
