Core Insights - Alibaba's Amap platform achieved a record 360 million daily users during China's National Day holiday, indicating a strong push into the local services market [1] - The platform guided trips totaling over 9 billion kilometers during the holiday period, showcasing its extensive usage [2] - Amap's new road safety system, Eagle Eye Guardian, issued over 290 million driving alerts, reflecting Alibaba's efforts to expand Amap's functionalities beyond navigation [3] Competitive Positioning - Amap is positioned to compete directly with Meituan in areas such as restaurant bookings, food delivery, and hotel reservations, as part of a broader strategy to create a local services ecosystem [3][4] - The launch of the AI assistant Xiaogao in August, which handled 2.6 billion user requests in one day, enhances Amap's competitive edge by assisting users with various travel-related inquiries [4] - Amap Street Stars, an AI-driven ranking tool for restaurants and hotels, was introduced to challenge Meituan's Dianping platform, combining navigation data with user reviews [5] Market Response and Valuation - Following these developments, Alibaba's shares rose 2.73% premarket, surpassing the previous 52-week high of $183.08 [5] - JPMorgan analysts raised their price target for Alibaba's Hong Kong shares by nearly 45%, indicating strong market confidence in the company's growth potential [6] - The valuation of Alibaba, at approximately 12 times fiscal 2028 earnings, suggests significant upside potential, bolstered by stronger cloud revenue and synergies between AI and e-commerce operations [6][7] Strategic Momentum - The record traffic on Amap, combined with Alibaba's AI innovations, signals renewed momentum for the company as it seeks to deepen its presence in China's digital services landscape [7] - Alibaba is positioned to leverage its capabilities across compute, platforms, and applications, directly improving merchant economics and focusing on long-term growth despite short-term competitive pressures [7]