Alibaba Stock Has Soared More Than 110% This Year. Here's Why It Might Not Be Too Late to Invest.

Core Viewpoint - Alibaba Group remains an attractive investment opportunity despite recent stock performance and geopolitical concerns, particularly due to its growth potential in AI and e-commerce [2][8][11] Group 1: Stock Performance - Alibaba's stock has more than doubled in value this year, significantly outperforming the S&P 500, which gained 17% [2] - The stock is currently trading at a price-to-earnings (P/E) ratio of 22, which is lower than the average P/E of 44 for the Technology Select Sector SPDR Fund and 26 for the S&P 500 [8][9] Group 2: Growth Opportunities - Alibaba's e-commerce business constitutes over 70% of its revenue, while its cloud business accounts for 13% [4] - The company has reported triple-digit growth in AI-related revenue for eight consecutive quarters, although overall organic growth was only 10% for the June quarter [3] - Alibaba is developing its own large language model, Tongyi Qianwen, and is collaborating with Apple on AI tools, indicating multiple avenues for future growth [5][7] Group 3: Market Position - Approximately 80% of Chinese tech companies utilize Alibaba Cloud, highlighting its significant market presence [7] - Despite its recent stock surge, Alibaba's valuation remains modest compared to its growth potential, suggesting room for further appreciation [9][11]