The AI Hype Train: Is Alibaba Just Another Passenger?
So, Alibaba's AI app, Qwen, supposedly crossed 10 million downloads. Big deal. In a country of billions, that's like saying your cat caught a particularly dusty sunbeam. Shares jumped 5%? Color me shocked. The market's so desperate for any scrap of good news, they'll latch onto anything.
And let's be real, this whole "AI-first" pivot from CEO Eddie Wu smells like a desperate attempt to rebrand. They were an e-commerce giant, now they're...an e-commerce giant with AI slapped on top. It's like putting racing stripes on a minivan and calling it a sports car. Anyone buying this?
Kenny Ng from China Everbright Securities thinks this "could influence how investors value Alibaba going forward." Oh really, Kenny? You think? That's the kind of groundbreaking analysis you get paid for? Give me a break.
The Numbers Game (or Lack Thereof)
Earnings are coming up on Tuesday. Analysts expect $0.85 per share on $34.30 billion in revenue. Okay. But what does that actually mean? Numbers are just numbers until you put them in context, and frankly, I'm tired of sifting through corporate reports to find the actual story.
They're gonna talk about cloud performance and their AI roadmap. I'm sure it'll be filled with buzzwords and vague promises of future innovation. You know, the usual song and dance.
And Ant Group launched their AI assistant, LingGuang. One million downloads in four days. Sounds impressive, right? But how many of those are active users? How many are just kicking the tires and then uninstalling it because it's just another buggy, half-baked AI chatbot? I'm betting it's a lot.
The China Factor
Here's the thing: ChatGPT ain't available in China. So, ofcourse, Alibaba has a huge advantage right there. It's not exactly a fair fight when the biggest competitor is sitting on the sidelines. So, is Qwen actually good, or is it just the best option available? That's the question nobody seems to be asking.
And the comparison to OpenAI? Please. That's like comparing a lemonade stand to Coca-Cola.
Alibaba's planning to add shopping, travel booking, and food ordering features. Great. More ways to track my data and shove targeted ads down my throat. Just what I always wanted. Maybe I'm just getting old, but I miss the days when the internet wasn't just one giant shopping mall.
Wall Street's still positive on BABA. Nineteen "buy" ratings and two "hold" ratings. The average price target is $198.21, implying almost 30% upside. All these analysts are drinking the kool-aid, or maybe they just need to justify their existence. Then again, maybe I'm the crazy one here. Why Alibaba Stock (BABA) Is Trending Higher Today
So, What's the Real Story?
They're riding the AI wave because they have to. Everyone else is doing it – hell, even my grandma's asking me about nvda stock and pltr. Alibaba's gotta stay relevant somehow. Whether they can actually deliver on the hype is another question entirely. Let's be real, it could be a complete mess in a year.
