Why $BABA (Alibaba-ADR) Is a Compelling Investment in 2025
Alibaba Group has emerged as one of 2025's most impressive performers, with shares surging nearly 72% year-to-date. This remarkable rally reflects more than just a rebound, it signals fundamental improvements that make BABA an attractive investment opportunity. And we have been buying $BABA since last year, all the way down, bringing our position to 36% profit, and the third largest holding in the portfolio.
Aggressive AI Investment Drive
The most exciting recent development came last week when CEO Eddie Wu announced plans to increase AI spending beyond the company's original $50 billion target. This bold commitment to artificial intelligence infrastructure and model development sent shares soaring to nearly four-year highs, demonstrating management's vision for future growth and Alibaba's determination to compete with global tech leaders in the AI race.
Strong Operational Performance
Beneath the headline numbers, Alibaba's business segments are delivering impressive growth. Alibaba Cloud reported 26% year-over-year revenue growth, while the international commerce division expanded 19% annually. These figures showcase the company's ability to diversify beyond its core Chinese e-commerce business and capture growth in high-margin cloud services and international markets.
Investor Confidence Returns
Market sentiment toward Alibaba has shifted dramatically. Chinese traders recently purchased $1.7 billion worth of BABA shares in a single week, more than any other stock, signaling strong domestic confidence. Meanwhile, analysts have set price targets around $172, suggesting continued upside potential from current levels.
The Bottom Line
After years of regulatory headwinds, Alibaba has turned the corner. The combination of aggressive AI investments, robust cloud growth, expanding international presence, and renewed investor confidence creates a compelling case for BABA as a growth investment. For investors seeking exposure to China's tech recovery and AI innovation, Alibaba represents an opportunity that shouldn't be overlooked.
We will keep holding strong!... Show More
We use our own and third-party cookies on our websites to enhance your experience, analyze traffic, and for security and marketing. For more info, see our Cookie Policy or go to Manage Settings.
Privacy Preference Center
When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.
More information
Manage Consent Preferences
Strictly Necessary Cookies
Always Active
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.
Performance Cookies
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.
Functional Cookies
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.
Targeting Cookies
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
Cookie List
label
ConsentLeg.Interest
label
label
label
Wed Nov 12 2025 06:45:40 GMT+0000 (Coordinated Universal Time)
