{"id":2692,"date":"2026-03-19T16:42:44","date_gmt":"2026-03-19T16:42:44","guid":{"rendered":"https:\/\/retrotradingreport.com\/index.php\/2026\/03\/19\/alibaba-stock-hands-investors-an-ai-business-for-free-find-out-more\/"},"modified":"2026-03-19T16:42:44","modified_gmt":"2026-03-19T16:42:44","slug":"alibaba-stock-hands-investors-an-ai-business-for-free-find-out-more","status":"publish","type":"post","link":"https:\/\/retrotradingreport.com\/index.php\/2026\/03\/19\/alibaba-stock-hands-investors-an-ai-business-for-free-find-out-more\/","title":{"rendered":"Alibaba stock hands investors an AI business for free: find out more"},"content":{"rendered":"
<\/div>\n

Alibaba (NYSE: BABA) is under immense pressure this morning after posting its Q4 earnings that came in short of Street estimates as strategic investments triggered an alarming 66% decline in net income.<\/p>\n

Still, experts at First Eagle \u2013 a US-based investment firm \u2013 recommend long-term investors to load up on BABA on post-earnings weakness as its artificial intelligence (AI) business remains largely underappreciated.<\/p>\n

Alibaba stock<\/a> has been a disappointment for its shareholders this year, losing about 30% since late January as the escalating US-Iran conflict continues to support \u201crisk-off\u201d sentiment.<\/p>\n

Alibaba stock offers a massive AI business for free<\/h2>\n

According to First Eagle, institutions still pigeonhole BABA shares as a legacy e-commerce story.<\/p>\n

Calling it a \u201cfundamental miscalculation\u201d, the investment firm said Alibaba\u2019s stock price is almost entirely a reflection of its core retail operations currently \u2013 effectively neglecting the massive long-term value of its AI segment.<\/p>\n

It sees the setup as highly attractive given the company\u2019s retail business offers a \u201cmargin of safety\u201d, while its artificial intelligence unit paves the way for future upside.<\/p>\n

In short, the AI business is essentially a \u201cfree call option\u201d for long-term investors building a stake in Alibaba Group Holding at current price.<\/p>\n

Plus, a 0.85% dividend yield and authorization to repurchase about $19.1 billion worth of its stock through March 2027 means investors will be handsomely rewarded for patience as well.<\/p>\n

Alibaba is turning AI demand into real revenue<\/h2>\n

Alibaba shares are worth owning also because the management looks committed to monetizing the firm\u2019s heavy research and development (R&D) spending.<\/p>\n

Reportedly, the NYSE-listed firm is raising prices across parts of its AI business as surging demand for domestic computing power allows it to lean into its market-leader status.  <\/p>\n

BABA recently announced plans<\/a> of raising prices for its proprietary T-Head AI chips, including its high-performance Zhenwu 810E model, by up to 34%.<\/p>\n

Moreover, its Cloud Parallel File Storage service \u2013 a critical component for data-heavy AI training \u2013 will see a 30% increase as well.<\/p>\n

These adjustments, effective next month, signal Alibaba Group\u2019s intent to convert its infrastructure dominance into near-term revenue, and position itself as a viable alternative to restricted Western hardware, effectively capturing the \u201cAI premium\u201d in the Chinese market.<\/p>\n

How to play BABA shares after Q4 earnings?<\/h2>\n

Beyond numbers, the \u201cCloud Intelligence\u201d unit is seeing triple-digit growth in AI-related revenue, a trend likely to accelerate as more enterprises integrate the firm\u2019s \u201cWukong\u201d agentic AI services.<\/p>\n

While the 66% drop in net income looks jarring on paper, it represents a deliberate shift in capital allocation \u2013 buying the future rather than propping up the present.<\/p>\n

With a massive cash pile, an ongoing $52 billion investment commitment to tech, and a dominant position in the nascent AI agent market, Alibaba is no longer just a digital mall \u2013 it\u2019s the backbone of China\u2019s computing future.<\/p>\n

At about 25x forward earnings<\/a>, BABA stock \u2013 for those willing to look past the quarter\u2019s volatility \u2013 is a high-growth AI giant disguised as a value stock.<\/p>\n

The post Alibaba stock hands investors an AI business for free: find out more<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Alibaba (NYSE: BABA) is under immense pressure this morning after posting its Q4 earnings that came in short of Street estimates as strategic investments triggered an alarming 66% decline in net income.Still, experts at First Eagle \u2013 a US-based investment firm \u2013 recommend long-term investors to load up on BABA on post-earnings weakness as its…<\/p>\n","protected":false},"author":1,"featured_media":2693,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2692","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/2692","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/comments?post=2692"}],"version-history":[{"count":0,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/2692\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media\/2693"}],"wp:attachment":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media?parent=2692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/categories?post=2692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/tags?post=2692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}