[Generated Title]: Alibaba's AI Hype Train: Or Just Another Chinese Tech Mirage?
So, Alibaba's AI app, Qwen, supposedly crossed 10 million downloads in a week. Big deal. Let's be real, in a country with, like, a billion people, that's a rounding error. Are we really supposed to believe this means Alibaba is suddenly going to become some AI powerhouse to rival OpenAI? Give me a break.
The "AI-First" Delusion
Alibaba CEO Eddie Wu wants to position the company as "AI-first," not just an e-commerce giant. Okay, whatever. It's the same song and dance every tech company is doing now. Slap "AI" on everything and watch the stock price jump. Reminds me of the whole "blockchain" craze a few years back. Remember that? Yeah, didn't think so.
And Ant Group's AI assistant, LingGuang, hitting a million downloads in four days? More of the same. People are curious, they download stuff. Doesn't mean they're actually using it, or that it's any good. I bet half those downloads are from bots anyway.
Kenny Ng from China Everbright Securities thinks the early response to Qwen could influence how investors value Alibaba going forward, calling it a "key step" in comparing Alibaba’s AI potential with platforms like OpenAI. Key step to what? Another bubble? Another overhyped tech stock that's gonna crash and burn when people realize it's all smoke and mirrors?
Wall Street's Wishful Thinking
Wall Street analysts remain "positive" on Alibaba. Offcourse they do. They always remain positive, until they're not. They expect AI, steadier demand, and cloud services to "support the business over time." Translation: They're hoping for a miracle, because the Chinese economy is a giant question mark right now. And let's not forget the ever-present threat of the CCP breathing down their necks, ready to change the rules on a whim.
On TipRanks, BABA stock has a "Strong Buy" consensus rating, with an average price target of $198.21 implying almost 30% upside. Maybe I'm missing something, but that sounds awfully optimistic. What if this whole AI thing is just another flash in the pan? What if the Chinese consumer decides they're tired of buying stuff from Alibaba? What if... well, you get the idea.
I mean, analysts lifted price targets on BABA stock like it's going out of style. Barclays went from $145 to $190, Jefferies Financial Group upped theirs from $178 to $230. It's like they're competing to see who can be the most delusional.
The Reality Check
So, BABA stock opened at $153.08 on Monday. The company has a market cap of $365.26 billion, a P/E ratio of 17.80, and a beta of 0.19. Numbers, numbers, numbers. They're meaningless until they ain't. Until the whole thing collapses, and then suddenly everyone saw it coming.
Insigneo Advisory Services LLC lifted its holdings in BABA by 22.9% during the 2nd quarter, owning 28,772 shares worth $3,263,000. Good for them. Hope they know what they're doing. More details about this acquisition can be found in a report by Alibaba Group Holding Limited $BABA Shares Acquired by Insigneo Advisory Services LLC.
I gotta admit, though, seeing those numbers makes me wonder if I'm being too cynical. Maybe there is something real here. Maybe Alibaba is on the verge of becoming an AI leader. Maybe... nah. Probably not. It's probably just another Chinese tech mirage.
So, What's the Real Story?
It's the same old hype cycle, just with "AI" slapped on top. Don't fall for it.
