Alibaba Doubles Down on AI Margins: Time to Hold or Cut Your Losses?

Key Takeaways Alibaba Group's (BABA) aggressive AI strategy is rapidly becoming an expensive gamble that threatens to destroy shareholder value rather than create it. Despite appearing cheap on traditional metrics, Alibaba represents a classic value trap where superficial attractiveness masks deeper structural problems. Alibaba continues to trade at a premium valuation with a Value Score of C. The market has priced in AI upside while underestimating execution risks and capital intensity required for meaning ...