8. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders as of Q4: 107
Think Investments’ Equity Stake: $20.56 Million
Alibaba Group Holding Limited (NYSE:BABA), a Chinese multinational technology conglomerate, dominates the e-commerce, cloud computing, logistics, and digital services sectors. The company provides a sound infrastructure that supports merchants, brands, and businesses across China and in international markets. Alibaba’s key platforms include Taobao and Tmall for e-commerce, Alibaba Cloud for cloud computing, Cainiao Network for logistics, and Ele.me for food delivery services.
Alibaba Group Holding Limited (NYSE:BABA) recently reported strong financial results for Q4 2024, showcasing a renewed growth trajectory and improved operational efficiency. For the quarter that ended December 31, 2024, Alibaba recorded revenue of RMB 280.15 billion ($38.38 billion), an 8% year-over-year increase. Income from operations surged by 83% YoY to RMB 41.2 billion ($5.65 billion), driven by reduced impairment of intangible assets and improved adjusted EBITA, which grew 4% to RMB 54.85 billion ($7.52 billion). Net income attributable to shareholders jumped 333% year-over-year to RMB 48.95 billion ($6.71 billion), reflecting strong operational performance and mark-to-market gains from equity investments. Earnings per ADS reached RMB 20.39 ($2.79), with non-GAAP diluted earnings per ADS increasing by 13% year-over-year to RMB 21.39 ($2.93). Alibaba’s cloud computing division showed strong growth as well, with revenue growing 13% year-over-year, fueled by the rapid expansion of AI-related services.
Beyond e-commerce, Alibaba Group Holding Limited (NYSE:BABA) remains committed to artificial intelligence and cloud infrastructure investments, intending to spend at least 380 billion yuan ($52 billion) in the technology over the next three years. However, the company’s Chairman, Joe Tsai, expressed concerns over the scale of AI investments in the U.S., suggesting that current spending levels may be excessive and could signal the start of an AI investment bubble. With strategic investments in AI, cloud computing, and core e-commerce operations, Alibaba Group Holding Limited (NYSE:BABA) is positioning itself for sustained growth in an evolving global market.
Nightview Capital stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q4 2024 investor letter:
“Artificial intelligence is no longer just a promise—it’s becoming the defining force of the modern economy. From self-driving vehicles to humanoid robotics, intelligent systems are not only enhancing efficiency but unlocking entirely new markets. These systems process and learn from vast amounts of real-world data, iterating and improving at a scale no human could achieve.
In our view, this isn’t just innovation; it’s exponential evolution. Companies leading the AI revolution are building formidable data moats, making it nearly impossible for latecomers to compete. Every mile driven by an autonomous vehicle, every task completed by an industrial robot—these actions feed a cycle of continuous improvement.
Industries like transportation, healthcare, and logistics are on the brink of massive disruption, and we believe this is a pivotal moment.
Alibaba Group Holding Limited (NYSE:BABA): Core Opportunity” Alibaba’s focus on stabilizing its core businesses, coupled with growth of its cloud and AI divisions, positions the company for a breakout. With 25% of its market cap in cash, We believe Alibaba offers a highly compelling risk / reward opportunity from a valuation perspective.
Competitive Advantage: Core Business Recovery: Alibaba’s e-commerce platforms, including Taobao with 930 million monthly active users, remain instrumental in China’s retail landscape. Revenue grew 5% YoY in the latest quarter, reflecting strategic improvements in user experience and pricing…” (Click here to read the full text)
