Alibaba's stock price hits a near four-year high as its three major business engines gain full momentum, heralding a new phase of growth?

Overnight, $Alibaba(BABA.US)$ Welcome to the DeepSeek moment of your own.

$BABA-W(09988.HK)$ The open source Qwen3-Next-80B-A3B new architecture model, a hybrid architecture that combines gate control DeltaNet and gate control attention, has a 90% drop in training costs compared to Qwen3-32B, and reasoning efficiency is increased by 10x, and performs well in scenarios above 32K of ultra-long text. In performance, the command fine-tuned version compares to the flagship Qwen3-235B, thinking the model surpasses Google's Gemini-2.5-Flash to become one of the most powerful low-energy open source models.

Out there, Baidu and Ariz are training artificial intelligence models using self-developed chips, according to The Information.

Spurred by the two news, Ami shares continued to rally overnight, hitting a near 4-year high, up more than 86% year-on-year.

In fact, after the release of Alibaba's latest Earnings Reports, many major investors moved up their Target Price, with the highest ever recorded by Barclays at $190. So, what new growth dynamics does Alibaba have? How do large Institutions expect others to show up? This article will analyze the relevant questions in depth and answer them for you.

What are the new growth dynamics, Ali?

Alibaba Tricycle — AI+Cloud Business+Instant Retail. Below we have a detailed description of each frame wagon:

1. AI (artificial intelligence): the new engine of the future

AI is more than just a business arm of Alibaba, it is a technology that permeates all businesses, the bottom-line technology that drives the growth of its entire business.

INNER EMPOWERMENT:

E-commerce: Maximize efficiency and user experience with AI for personalized recommendations, optimized search rankings, intelligent customer service, business operations tools, and more.

Logistics: AI-optimized logistics connections, predictive warehouse demand, automated warehouse management, and enables 24-hour delivery of national couriers.

Local Life: Get hungry or use AI to plan the best delivery path for efficient, real-time delivery.

External Services:

Model as a Service (MaaS): Alibaba offers robust AI foundation services, including its own open-source, multi-billion parameter large model “Generic Questions”. Businesses and developers can either call the API directly, or train their own proprietary models based on a base that makes sense thousands of questions.

Industrial Solutions: AriCloud combines AI capabilities with cloud computing to provide intelligent solutions for the financial, manufacturing, transportation, medical, and other industries, such as medical image analysis, industrial quality inspection, financial wind control, etc.

2, Cloud Business: Value Valuation Engine for Over-Term Growth

Ariyun Business Shows Strong Growth Acceleration. The quarterly revenue was estimated at RMB 33.4 billion, a year-on-year growth of 26%, outpacing the market by 20-25%. This is the eighth consecutive quarter of AI-related revenue growth, and AI-related revenues have previously exceeded those of External Cloud Business by 20%.

This outperformance is mainly driven by three factors. According to HSBC analysis:

First, the strong AI led demand and the growth in the demand for large-scale training in the Vertical Industry, which led to new growth momentum for ARI. Industry customers, such as Education, Media and Medical, need to create custom models to create new needs for training and moderation.

Second, Agent application accelerates B-side commercialization, providing a one-stop solution through the AgentBay platform;

Third, increased AI penetration drives growth in demand for traditional computing, storage, and big data services.

IT IS WORTH MENTIONING THAT ALI CAPITAL INVESTMENT HAS INCREASED SIGNIFICANTLY. AI+ Cloud computing capital expenditure increased to RMB 39 billion, up 56% from RMB 25 billion in the previous quarter. Management reiterates plans to invest $380 billion in AI and cloud infrastructure over the next three years.

3. Instant Retail Business: Application Point Display of Regulatory Modeling

Alibaba's online flash acquisition business in April has generated quality synergies to take the lead in fierce market competition.

Among them, user growth and market share growth are ahead of schedule. Monthly usage grew 200% to 0.3 billion in April, and life expectancy grew by 3½ to 2 million. Alibaba has reached the market leader in the fast-moving business sector, with an average daily order value of 0.12 billion units in August, with an average of around 80 million units.

According to Citi Analyst, Flash Sales Business has begun to generate the synergies it shows — user engagement and supply chain expansion, driven by traffic growth across the e-commerce ecosystem. Management expects unit losses to be halved in the short term through increased customer retention, order structure optimization and contract performance improvements.

Beyond that, as the selling conflict continues, Aly has re-invested in the store business. Gaute announced a list of four categories based on the number of people arriving at the hotel, purchasing rate, and the width of the group of people, the main categories of food, hotels and views, according to the number of people who fly to the store, to create a truly trustworthy list, to make Gaute training a comparable experience. Linear inlet of the shoulder blade.

In fact, Ali's three checkers are hidden behind the “God-Sweeping Street Chart”:

First, the depth of the data value is skewed. Gode credits other precise real-time human flow insights that translate downstream behavior into meaningful analytics results for the tool business. For example, identifying high-traffic streets, high-frequency convenience stores, and hotspots as hotlines, merchants provide decision support on access, operations, and marketing to directly link to business growth.

Second, payment site ecosystem construction. By guiding user funds to benchmark fees in advance, the Payout Rate has become the preferred payment tool in the consumer spending landscape. It not only increases user engagement, but also creates a barrier in the High Frequency Trading environment, further solidifying the competitive advantage of other payment markets.

Third, the creation of a global circle of living services. Alibaba is building the next integrated lifecycle ecosystem online by moving from leading-edge, consumer spending solutions to offline experiences. This platform not only extends the user value chain, it strengthens the transparency and integration of the platform across the consumer spending landscape.

How do large Institutions expect Arie not to show up?

Analysts noted that Alibaba has entered the investment return period, expecting a double-digit increase in revenue in the next 12-24 months, with profits accelerating in the immediate period of retail losses.

The long-term outlook for AI themes and the accelerated growth of the E-Commerce business will drive the share price upside. JPMorgan posted a Target Price of $170 based on its forecast market PE of $170, recognizing that the company's streamlined operations, strong financial resources, and a clear buying and aggressive strategy will lead to sustainable 2-digit digital profit growth.

JPMorgan reported that Aly announced a return to its offline physical store business, and the mobile map application Gaute Maps will launch an internal feature of the Gaute Street Scan app on the morning of the day. However, in Aryan language, the reason for the entrance to the store business is low: 1) Gaute Map has increased daily active users, 2) Gaute has increased the number of large number of shoppers3. The business cap can be increased rapidly through third-party service providers. For the next quarter, the market will focus on the changes in Meituan's core local business profit ratio to assess the real impact of the Arixin business.

The Institutional Code, launched by Gowder Street, is an important step in Alibaba's super app strategy, which aims to create a major entry point for local services down the Aryan Line, with its online traffic inflows and flows. This can go hand in hand with paying cooperatives, increasing user engagement and capacity for change, and potentially opening up more offline spending opportunities. The key to the success of this program lies in the cultivation of technological capabilities and user training.

Morgan Stanley Releases Research Reports that Alibaba's Google Maps Business Is New, or the Group's First Step in Reinventing the Store Service. Oma said that competitors in the field of immediate delivery could expand to in-store services, according to Quest Mobile. After this artificial intelligence upgrade, Gauteng Maps is the largest navigation map application in China, with daily users (DAU) 0.2 billion. Oma said that this could be Alibaba's first step in relaunching its store services before or launching more related services.

As an investor, how to deploy better?

On the heels of the strong positive news overnight, Arido saw bullish options rise by 10bp.

As an investor, there are three options strategy strategies to choose from if you continue to see a bullish post-market trend:

1, hedged strategy: Covered Call options

Strategy Note: Sell Bullish options at the same time relative to the option price by holding the Shares of Aryan, taking out the proceeds of the rights and lowering the cost of Hold Positions. The strategy is suitable for investors with a low risk preference for Aryan Stocks, while hedging share gains while hedging share upside risks through options hedging.

Let's see specifically:

Suppose an investor holds 100 shares of BABA (cost price of about $140/share) and the current share price is $155.44.

Sell the option at USD 165 (the current share price is higher than the light price), the bullish options for the date of 1 month, to collect the rights.

The share price is below $165 at the close of USD 165, options will not be exercised, investors will guarantee the rights and hold the shares at the same time (increase in share price, gain as share gain+Decrease in equity capital, loss of rights - Amount of loss on shares).

The share price is above $165, the options are vested, the investor sells Stock Stocks for $165, the total income is (165-140) +the option capital*100 shares (lock in the yield, avoid the risk of a drop in the share price).

— Benefits and Risks:

The share price is below $165 at the close of USD 165, options will not be exercised, investors will guarantee the rights and hold the shares at the same time (increase in share price, gain as share gain+Decrease in equity capital, loss of rights - Amount of loss on shares).

The share price is above $165, the options are vested, the investor sells Stock Stocks for $165, the total income is (165-140) +the option capital*100 shares (lock in the yield, avoid the risk of a drop in the share price).

— Advantages: limited risk, stable income (royalty + partial share price increase), suitable for conservative investors.

2. Balanced strategy: Bull Call Spreads

Strategy Note: By buying the bullish option on the low option (Call) and simultaneously selling the bullish option on the high warrant price (Call), lowering the cost of the Buy option, while limiting the upside profit. The strategy is suitable for investors who want to control costs and who want to control costs, balancing risk and return by locking in profits through price spreads.

Let's see specifically:

The purchase option is priced at $160 (close to the current share price, relative to the low price). Bullish options dated for 1 month are paid out at about $6.3/share.

Sell the warrants at $170 (above the current share price, relative to the off-price medium), and receive a dividend of about $3.6/share on the same date.

The price is 6.3-3.6=$2.7/share ($270 combined, if 100 shares are traded).

Benefits and Risks:

The Share Price is in the range of $160-170 on the Date, the Profit on the Options Bought (Share Price-160-2.7), the Selling Options is Non-Executed, the Total Income is (Share Price-$162.7/Share (if the Share Price is $165USD, and the Earnings are $2.33/Share).

The share price is above $170, the profit on the options bought, the loss on the options sold, and the total income is fixed at $7.3/share (avoiding unlimited expansion of the free entry income.

The share price is below $160, the loss of the options bought is lost, the Sold option proceeds in the deposit box, without the need for exercise, the maximum loss is 270 US dollars (100 shares).

It is worth noting that when options are exercised, it is possible that the price of the symbol Asset Assets does not change, resulting in a loss on the income of the Far Superannuation.

3, Proactive strategy: Buy bullish options (Long Call)

Strategy Note: Buy the Call Option directly to reap the benefits of a larger upside in the share price at a smaller royalty cost. The strategy is suitable for investors who are extremely risk-averse and have a good view of the long-term growth of Ari. They need to incur unlimited downside risks (loss of rights gains) while taking effect.

Specific operations:

The purchase option is priced at $160 (close to the current share price, relative to the low price). Bullish options dated for 2 months will be paid at approximately $11.4/share (USD 11404/share if 100 shares are traded.

Benefits and Risks:

The share price is above $160, and the options yield is (share price-160-11.4 USD/share (if the share price is $180, the yield is $8.6/share, and the yield is about 75%).

The share price is below $160, the options expire and the maximum loss is $1140 (option bonus).

Advantage: Effective display (to extract high profits with marginal capital) is suitable for motivating advanced investors to move up the stock price and gain far higher profits to directly own stocks.

Risk Warning: Indefinite downside risk (loss of all rights) is required, and if stock price volatility falls short of expectations (such as a gain of less than 5%), the equity may decrease due to time decay (Theta).

However, it should be noted that Options Trading is risky and investors need to choose a strategy wisely based on their own risk, investment objectives and market environment.