March 26, 2025

If Michael Burry and David Tepper—two of the most famous investors—are placing their bets on Alibaba (BABA), then there’s gotta be something good about this behemoth, right? 🚀💵 Burry, the guy who famously bet against the 2008 real estate bubble (and was immortalized in The Big Short), has 23.7% of his fund in BABA. Not to be outdone, Tepper, the hedge fund legend, has **21.9% of his Appaloosa Management fund in the same stock. So, what’s going on here? Is Alibaba an investment goldmine, or are they just giving us more digital unicorns (because, let’s face it, they have all the platforms, all the markets, and probably your data too) 🦄💻?

What Does Alibaba Actually Do? Oh, Just About Everything 🤯📦

The truth is, Alibaba is the Swiss Army knife of e-commerce and digital services. They’ve got everything—literally. From Taobao to Tmall, from Alipay to AliExpress, this company covers it all like a blanket on a cold winter’s day. Let’s break it down:

• Taobao & Tmall: Think of them as the Chinese Amazon or eBay, with some extra flair. 🛍️

• AliExpress: International e-commerce, where you can buy a self-cleaning robot or a Ferrari sticker for your fridge—don’t ask why. 🚗📦

• Lazada & Trendyol: Southeast Asian powerhouses. So, yeah, they’re global. 🌏

• Cainiao Network: You want delivery? These guys can deliver faster than you can say “2-day shipping.” 🚚💨

• Youku & Quark: Videos and info consumption apps that basically own the digital world. 🎥💡

• AI & Cloud: The future? More like the present. Alibaba’s Cloud and AI solutions are growing, fast. 🤖☁️

Spoiler #1: What don’t they do? Maybe they won’t send a personal chauffeur to pick you up… yet.

Financial Flexibility: Just Like That Time You Got Your Tax Return 💸🎉

Let’s talk numbers—because we all know that the proof is in the pudding. Alibaba isn’t just sitting on a pile of e-commerce cash, it’s got the profitability to back it up. For starters, Q4 2024 showed some serious growth across the board:

• Customer management revenue at Taobao and Tmall up 9% 💡

• Cloud revenue growth reignited to 13%, fueled by AI-related product revenue (hello, machine learning!) 🧠🤖

• Youku’s advertising revenue increased, resulting in 8% year-over-year growth for the Digital Media and Entertainment Group 🎬📈

• And the real kicker? Alibaba repurchased 119 million ordinary shares worth $1.3 billion in Q4. And, because it’s Alibaba, they’re doing it in style. 💥

Spoiler #2: Alibaba’s valuation is on the brink of becoming a value investment, with a P/E ratio of 19.39 (as of 3/26/2025). You know who else thought BABA was a good pick? Charlie Munger. So, there’s that.

Risks, Risks, and More Risks: Geopolitics and the Great Wall of China 🏯🛑

Okay, let’s not sugarcoat it—BABA isn’t perfect. While Alibaba’s business model might be as robust as a digital fortress, China’s regulatory environment and geopolitical tensions could be the real threat to future success. Also, the company technically operates through a shell company in the Cayman Islands, not directly in China, which could complicate your portfolio if you’re into clear ownership structures.

And of course, there are tariff threats and China’s communist structure to think about. But hey, just like with Tesla and Bitcoin, risks are part of the fun of being in the market, right? 🌍⚖️

The Takeaway: Is Alibaba a Goldmine or Digital Unicorn? 🦄💰

Spoiler #3: Look, we’re not saying Alibaba is the next Amazon (though it certainly has some Amazon-like qualities). But it’s a giant with a serious growth trajectory ahead. If you want a stake in China’s booming tech sector and believe in AI, cloud computing, and the future of e-commerce, Alibaba could be the ticket.

Is it a goldmine? Possibly. Is it overvalued? Probably not. But then again, Alibaba is a company that just doesn’t stop—like a train you can’t quite catch. 🚂

Spoiler #4: And while we’re not buying a Ferrari any time soon, investing in BABA? Now that’s a bet with potential. Just remember, the road can always get bumpy—hold on tight! 😎💥

Summary: Alibaba’s Big Potential and Risks 🚀💼

Alibaba is undeniably massive in the world of e-commerce, AI, and cloud services. With strong earnings growth, impressive stock repurchases, and a robust business model, BABA could be an attractive investment for those looking to tap into China’s tech boom. However, with geopolitical risks and regulatory challenges in China, the path isn’t exactly smooth. Still, at a P/E ratio of 19.39, Alibaba’s valuation is reasonable—especially with the continued potential for growth. So, is BABA a goldmine or a digital unicorn? It might be both. Just remember, invest wisely and buckle up for the ride! 🚀💰

Disclaimer: Take everything we say/write with a grain of marine sea salt. We can be so wrong, it’s almost hilarious! 😆