Elite Automation’s Post

𝐄𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐌𝐚𝐫𝐤𝐞𝐭 𝐋𝐢𝐧𝐤𝐬 + 𝐓𝐡𝐞 𝐖𝐞𝐞𝐤 𝐀𝐡𝐞𝐚𝐝 (𝐉𝐮𝐥𝐲 𝟖, 𝟐𝟎𝟐𝟒) 𝘔𝘪𝘤𝘳𝘰𝘴𝘰𝘧𝘵+𝘈𝘮𝘢𝘻𝘰𝘯'𝘴 𝘊𝘩𝘪𝘯𝘢 𝘴𝘵𝘳𝘶𝘨𝘨𝘭𝘦𝘴, 𝘈𝘎 𝘵𝘢𝘳𝘨𝘦𝘵𝘴 𝘛𝘦𝘮𝘶, 𝘯𝘦𝘸 𝘭𝘪𝘢𝘣𝘪𝘭𝘪𝘵𝘪𝘦𝘴 𝘧𝘰𝘳 𝘊𝘩𝘪𝘯𝘦𝘴𝘦 𝘥𝘪𝘳𝘦𝘤𝘵𝘰𝘳𝘴, 𝘳𝘪𝘴𝘬 𝘰𝘧𝘧 𝘴𝘪𝘨𝘯𝘴, 𝘚𝘰𝘶𝘵𝘩 𝘈𝘧𝘳𝘪𝘤𝘢 𝘮𝘰𝘳𝘦 𝘣𝘶𝘭𝘭𝘪𝘴𝘩, 𝘍𝘔 𝘳𝘦𝘧𝘰𝘳𝘮, 𝘌𝘔 𝘴𝘵𝘰𝘤𝘬 𝘱𝘪𝘤𝘬𝘴 & 𝘵𝘩𝘦 𝘸𝘦𝘦𝘬 𝘢𝘩𝘦𝘢𝘥 𝘧𝘰𝘳 𝘦𝘮𝘦𝘳𝘨𝘪𝘯𝘨 𝘮𝘢𝘳𝘬𝘦𝘵𝘴. Caixin has reported how Microsoft is shutting physical stores in China in a shift to online-only sales plus Amazon is shutting down their Chinese Kindle e-bookstore as both can no longer compete effectively with local competitors. At the same time, Momentum Works has noted how many are sceptical about Amazon’s new discount service to compete with Temu and Shein in the USA just as Beijing bolsters their backing for overseas E-Commerce warehouses. However, the anti-CCP Epoch Times (via ZeroHedge) has reported how Amazon no doubt intends to take on their Chinese eCommerce competitors…: #EmergingMarkets #FrontierMarkets #StockPicks #Temu #Shein #Amazon https://lnkd.in/gqT_Ns7q

🚀 Earnings Report Update: Alibaba - My Sole Portfolio Holding! 🚀 Alibaba reported their fiscal Q4 FY2024 earnings today, and here's my detailed breakdown and assessment: 1️⃣ Mixed Results: The report showed mixed results, with a disappointing bottom-line performance but stronger-than-expected top-line growth. 2️⃣ Revenue Growth: Revenue grew by 7%, outpacing analysts' forecasts. This robust growth challenges the narrative that Alibaba is a dying business and highlights the positive impact of their investments in core operations. 3️⃣ Net Income: Net income tumbled -96% y/y in Q4. However, this alarming figure is mostly due to mark-to-market losses on publicly listed investments, which is less concerning for long-term investors. 4️⃣ Alibaba Cloud: The cloud business segment only grew by 3% y/y, which is subdued compared to the double-digit growth of its western peers. 5️⃣ Management Focus: Management has emphasized that this year's priority is improving user experience across its platforms and boosting GMV across e-commerce assets, explaining the heavy CAPEX and lower profitability. 6️⃣ CAPEX and Cash Flow: With CAPEX increasing, free cash flow took a hit this quarter. I believe these investments are justified and will deliver good ROI in the future. 7️⃣ Strong Cash Position: Alibaba's net cash balance of $61.8B provides ample resources to support their aggressive growth strategy. 8️⃣ Share Buybacks: The company remains committed to buying back shares aggressively, indicating management's confidence in the stock's undervaluation and their alignment with shareholder interests. In conclusion, I believe Alibaba is a fundamentally sound business poised to generate and return billions of dollars to shareholders for the foreseeable future, despite the current heavy investment cycle in its core businesses. While the headline numbers for Q4 were somewhat underwhelming, Alibaba's core businesses are improving beneath the surface. #Alibaba #EarningsReport #Investment #RevenueGrowth #StockMarket #FinancialAnalysis #LongTermInvesting #CloudComputing #ShareBuyback #CAPEX

🚀 𝐂𝐡𝐢𝐧𝐚 𝐒𝐭𝐨𝐜𝐤 𝐑𝐚𝐥𝐥𝐲 𝐋𝐞𝐚𝐯𝐞𝐬 𝐀𝐥𝐢𝐛𝐚𝐛𝐚 𝐎𝐮𝐭 𝐢𝐧 𝐭𝐡𝐞 𝐂𝐨𝐥𝐝 Despite the robust rally in Chinese stocks, #Alibaba finds itself struggling to catch up. Here's a snapshot of the market dynamics as of May 2024: 📉 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐎𝐯𝐞𝐫𝐯𝐢𝐞𝐰: ▪ 𝐀𝐥𝐢𝐛𝐚𝐛𝐚: Gains of less than 5% this year. ▪ 𝐓𝐞𝐧𝐜𝐞𝐧𝐭 𝐚𝐧𝐝 𝐎𝐭𝐡𝐞𝐫𝐬: Double-digit growth, significantly outperforming Alibaba. 🔍 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐌𝐨𝐯𝐞𝐬: ▪ Alibaba has committed $12 billion annually for share buybacks over the next three fiscal years. ▪ The company is also revising its dividend strategy, with updates expected soon. ▪ Significant investments, such as the $800 million in AI startup Moonshot, underline Alibaba's commitment to innovation. 📊 𝐌𝐚𝐫𝐤𝐞𝐭 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬: ▪ While the Hang Seng China Enterprises Index has seen a rise of 17%, Alibaba's shares are still 74% down from their 2020 peak. ▪ A restructuring attempt in 2023, aimed at enhancing shareholder value, remains uncertain with several plans retracted. 👀 𝐋𝐨𝐨𝐤𝐢𝐧𝐠 𝐅𝐨𝐫𝐰𝐚𝐫𝐝: ▪ With earnings reporting due on May 14, Alibaba aims for a revenue increase of 5.5% to 219.7 billion yuan for Q1. ▪ The focus on artificial intelligence and cloud computing continues to be a major strategy to stimulate growth. 💡 𝐈𝐧𝐬𝐢𝐠𝐡𝐭: Alibaba's current stock valuation stands at less than 10 times forecast earnings for the next 12 months, suggesting a potential undervaluation relative to historical averages. source: LSEG Reuters #Finance #Investment #Technology #ECommerce #StockMarket #Alibaba #ChinaStocks #MarketTrends #TechInvesting #ChineseMarkets #FinancialAnalysis #Leadership

Hi there, guys! Our Take on Alibaba's First Fiscal Quarter Results: Last Thursday, Alibaba reported its Q1'25 financials, delivering a mixed bag—beating earnings expectations but missing on revenue. The Not-So-Good: 1) Main Segment Struggles: Taobao and Tmall Group, accounting for about 42% of Alibaba's revenue, saw a slight 1% YoY decline, highlighting the slow recovery in the Chinese economy as consumers tighten their spending; 2) Revenue Miss: Alibaba's overall revenue increased by 4% YoY, falling short of analysts' expectations of a 6% rise. 3) Profitability Impacted: The company's profitability took a hit due to a near doubling of CAPEX. The Good: 1) Growth in Cloud and International: Alibaba's cloud division and international e-commerce segments showed strength, with a 6% and 32% YoY Top Line increase, respectively. This was driven by double-digit growth in public cloud services and the rising adoption of AI-related products. 2) AI Momentum: AI-related revenue surged, with triple-digit YoY growth. Notably, the number of paying users on Alibaba Cloud's AI platform grew by over 200% quarter-over-quarter. 3) Aggressive Share Buybacks: Last quarter alone, Alibaba repurchased $5.8B in ordinary shares. If this pace continues, the company could spend around $23B on buybacks this fiscal year—equivalent to 12% of its current market cap! Key Risks: 1) Regulatory Pressure: Government crackdowns on large tech and e-commerce companies remain a significant risk. 2) Intensifying Competition: Increased competition could threaten Alibaba's MOAT. 3) e-Commerce Slowdown: A potential slowdown in e-commerce, which still makes up the bulk of Alibaba's revenue, is a concern. Valuation: Even with conservative assumptions, we value Alibaba at about $120 per share, indicating a 46% upside from current levels. Final Thoughts: We believe the negative factors are already priced into the stock, which is still trading at a significant discount to its intrinsic value. With strong share buybacks and dividend payments, investors are essentially being paid to wait for Alibaba's strategic investments and efficiency improvements to bear fruit! #Alibaba #EarningsReport #StockMarket #Investing #Finance #TechStocks #ECommerce #CloudComputing #ArtificialIntelligence #ShareBuyback #LongTermInvesting #MarketAnalysis #InvestmentStrategy #financialresults

Hello, Guys! 😀 🚀 Earnings Report Update: Alibaba - Our Sole Portfolio Holding! 🚀 Alibaba reported their fiscal Q4 FY2024 earnings today, and here's our detailed breakdown and assessment: 1️⃣ Mixed Results: The report showed mixed results, with a disappointing bottom-line performance but stronger-than-expected top-line growth. 2️⃣ Revenue Growth: Revenue grew by 7%, outpacing analysts' forecasts. This robust growth challenges the narrative that Alibaba is a dying business and highlights the positive impact of their investments in core operations. 3️⃣ Net Income: Net income tumbled -96% y/y in Q4. However, this alarming figure is mostly due to mark-to-market losses on publicly listed investments, which is less concerning for long-term investors. 4️⃣ Alibaba Cloud: The cloud business segment only grew by 3% y/y, which is subdued compared to the double-digit growth of its western peers. 5️⃣ Management Focus: Management has emphasized that this year's priority is improving user experience across its platforms and boosting GMV across e-commerce assets, explaining the heavy CAPEX and lower profitability. 6️⃣ CAPEX and Cash Flow: With CAPEX increasing, free cash flow took a hit this quarter. We believe these investments are justified and will deliver good ROI in the future. 7️⃣ Strong Cash Position: Alibaba's net cash balance of $61.8B provides ample resources to support their aggressive growth strategy. 8️⃣ Share Buybacks: The company remains committed to buying back shares aggressively, indicating management's confidence in the stock's undervaluation and their alignment with shareholder interests. In conclusion, We believe Alibaba is a fundamentally sound business poised to generate and return billions of dollars to shareholders for the foreseeable future, despite the current heavy investment cycle in its core businesses. While the headline numbers for Q4 were somewhat underwhelming, Alibaba's core businesses are improving beneath the surface. #Alibaba #EarningsReport #Investment #RevenueGrowth #StockMarket #FinancialAnalysis #LongTermInvesting #CloudComputing #ShareBuyback #CAPEX

📌 Alibaba's Strategic Shift: Navigating Competitive Waters 🌊 Alibaba’s latest move to prioritize long-term growth over short-term profits is making waves in the e-commerce world. While early signs of success are apparent, stiff competition could shape the outcome of this bold strategy. Key Points: - 📉 Emphasis on sustained growth over immediate profit margins. - 🤝 Building stronger relationships with small to mid-sized businesses. - 📦 Enhancing logistics and delivery infrastructure. - 🌐 Expanding international market reach. Potential Implications: - E-commerce landscape may see a pivotal shift in growth strategies. - Small businesses could find more robust support systems and opportunities. - Heightened competition might drive innovation and better customer experiences across the industry. It’s a testament to Alibaba’s resilience and forward-thinking, but only time will tell if these maneuvers will steer them back to the pinnacle of market dominance. What do you think about Alibaba's new approach? Could this be a model for other giants, or is the competitive pressure too fierce? 👉 If you’d like to learn more about creating an AI Twin for your business and see some case studies go here: https://lnkd.in/gjWhtUK #Ecommerce #BusinessStrategy #Alibaba #MarketTrends #Innovation #Growth

My Take on Alibaba's First Fiscal Quarter Results: Last Thursday, Alibaba reported its Q1'25 financials, delivering a mixed bag—beating earnings expectations but missing on revenue. The Not-So-Good: 1) Main Segment Struggles: Taobao and Tmall Group, accounting for about 42% of Alibaba's revenue, saw a slight 1% YoY decline, highlighting the slow recovery in the Chinese economy as consumers tighten their spending; 2) Revenue Miss: Alibaba's overall revenue increased by 4% YoY, falling short of analysts' expectations of a 6% rise. 3) Profitability Impacted: The company's profitability took a hit due to a near doubling of CAPEX. The Good: 1) Growth in Cloud and International: Alibaba's cloud division and international e-commerce segments showed strength, with a 6% and 32% YoY Top Line increase, respectively. This was driven by double-digit growth in public cloud services and the rising adoption of AI-related products. 2) AI Momentum: AI-related revenue surged, with triple-digit YoY growth. Notably, the number of paying users on Alibaba Cloud's AI platform grew by over 200% quarter-over-quarter. 3) Aggressive Share Buybacks: Last quarter alone, Alibaba repurchased $5.8B in ordinary shares. If this pace continues, the company could spend around $23B on buybacks this fiscal year—equivalent to 12% of its current market cap! Key Risks: 1) Regulatory Pressure: Government crackdowns on large tech and e-commerce companies remain a significant risk. 2) Intensifying Competition: Increased competition could threaten Alibaba's MOAT. 3) e-Commerce Slowdown: A potential slowdown in e-commerce, which still makes up the bulk of Alibaba's revenue, is a concern. Valuation: Even with conservative assumptions, I value Alibaba at about $120 per share, indicating a 46% upside from current levels. Final Thoughts: I believe the negative factors are already priced into the stock, which is still trading at a significant discount to its intrinsic value. With strong share buybacks and dividend payments, investors are essentially being paid to wait for Alibaba's strategic investments and efficiency improvements to bear fruit! #Alibaba #EarningsReport #StockMarket #Investing #Finance #TechStocks #ECommerce #CloudComputing #ArtificialIntelligence #ShareBuyback #LongTermInvesting #MarketAnalysis #InvestmentStrategy #financialresults

🚀 Why I Keep Increasing My Stake in Alibaba 🚀 Three days ago, I increased my stake in Alibaba for the fourth time, having now accumulated a significant number of shares in what remains my single equity holding position. 📈 This means a considerable chunk of my net worth is invested in this stock. Contrary to what analysts and most investors advocate, I don't and probably never will diversify my portfolio. I am a strong believer that good ideas don't come along often, and when they do, one should be greedy and act unemotionally. Alibaba is, as you already know if you have been reading my posts, the cheapest AI and Cloud services provider in the world. 🌐 Add to that a pristine financial position, a talented and ambitious management team, and you have the icing on the cake. My thesis is simple: the market will very soon recognize Baba's current mispricing, and when it does, the price move will be explosive. 💥 My cost basis sits at $75 per share, which is very good and not far from the lows the company traded at over the past few years. To triple my money, the company would have to reach $225 per share. It will come. In the meantime, patience remains key. Remember, we think like business owners. As investors, we don't have to track the price all the time. After all, if the company's fundamentals improve, the price will follow over time! 🕰️ #Investing #Alibaba #StockMarket #InvestmentStrategy #LongTermInvestment #Focus #Conviction #AI #CloudServices #Finance #PersonalFinance #WealthBuilding #Patience

📈 "In the short run, the market is a voting machine. In the long run, it's a weighing machine." - Benjamin Graham This quote comes to mind every time I hear that Alibaba stock is "dead money." Alibaba (BABA) is far from a stagnant entity. It is the leading e-commerce conglomerate in China, the top cloud computing service provider in the country, and a dominant player in AI. Some even consider it an AI ETF due to its substantial investments in premier AI companies. Despite geopolitical concerns and government crackdowns, which have weighed down its stock, Alibaba continues to demonstrate robust growth. With an 8% revenue growth rate and phenomenal long-term prospects, the company’s fundamentals remain strong. Since its IPO in 2014, Alibaba's revenues have increased nearly 18-fold, yet the stock price trades within the same range as it did back then. Many are quick to call China "uninvestable," but let's not forget that it remains the world's second-largest economy, growing its GDP at 5%. I believe these concerns are overhyped. In the long-term, the market will recognize the true value of this behemoth. Investors will eventually see that Alibaba is too good to be trading at these valuations. Long-term vision always prevails. 🏆 #Investing #Alibaba #StockMarket #LongTermGrowth #Economy #AI #Ecommerce #CloudComputing #InvestmentStrategy

MASSIVE week of China tech results next week. Tencent and Alibaba on Tuesday, JD.com and Baidu (and probably Meituan) on Thursday. Key things to look out for: - continued margin recovery and expansion - update on buybacks, since these companies are sitting with significant net cash balances. Alibaba has bought back $30bn over the last year and currently plan to buy back almost 20% of their shares over the next couple of years. The CSRC's 9 point plan to improve the quality and returns from the Chinese equity market, new reforms (considering scrapping dividend tax) and stimulus announcements have been positive catalysts. The Chinese equity market has sneakily outperformed the S&P 500 by >10% over the last month. Has the rotation started? Most Developed Market based investors call China uninvestable. The Chinese economy will have to digest the property bubble for many years, so best to be selective with the exposure you take. Fortunately high quality, growth companies are now trading at single digit Price/Earnings multiples. Link to the Fairtree Emerging Market fact sheet where we have 29% exposure >> https://lnkd.in/eX78nfzv #investing #marketinsights