Will Alibaba Group (BABA) be Able to Leverage Its Capabilities?

Core Insights - Oakmark Global Fund's objective is long-term capital appreciation through investments in a diverse range of U.S. and non-U.S. companies, with a focus on all market-cap companies [1] - In Q4 2025, the fund achieved a return of 5.23%, outperforming the MSCI World Index, which gained 3.12% [1] Company Performance - Alibaba Group Holding Limited (NYSE:BABA) was highlighted as a significant stock in the fund's Q4 2025 investor letter, with a one-month return of 13.54% and a 52-week gain of 102.58% [2] - As of January 12, 2026, Alibaba's stock closed at $167.01 per share, with a market capitalization of $398.707 billion [2] Challenges and Outlook - Alibaba was noted as the top detractor in the fund during Q4 2025 due to mixed results, despite strong performance in its core e-commerce business and accelerating cloud revenue growth [3] - The company's earnings were negatively impacted by significant spending on subsidies for its Quick Commerce business, but there is an expectation that losses will decrease over time [3] - Alibaba is considered well-positioned for long-term growth, leveraging its early investments in AI to unlock further value [3] Market Position - Alibaba ranks 17th among the 30 Most Popular Stocks Among Hedge Funds, with 130 hedge fund portfolios holding its shares at the end of Q3 2025, an increase from 101 in the previous quarter [4] - In Q1 2026, Alibaba reported revenue of RMB 247.7 billion, indicating its strong market presence [4]