Alibaba: Cloud, Commerce, and the Power of Scale

Alibaba is a leading Chinese company with a powerful ecosystem that spans e-commerce, cloud computing, logistics, and digital services. Its core platforms, Taobao and Tmall, dominate online retail in China, while Alibaba Cloud is a top player in the country’s cloud infrastructure market. With growing investments in AI, international commerce, and new monetization tools, Alibaba is positioning itself for long-term growth. The question is: Does this tech giant deserve a place in your portfolio?

This is not a financial advice. I am not a financial advisor and I only do these post in order to do my own analysis and elaborate about my decisions, especially for my copiers and followers. If you consider investing in any of the ideas I present, you should do your own research or contact a professional financial advisor, as all investing comes with a risk of losing money. You are also more than welcome to copy me. 

For full disclosure, I should mention that I do own any shares in Alibaba at the time of writing this analysis. If you would like to copy or view my portfolio, you can find instructions on how to do so here. If you want to purchase shares or fractional shares of Alibaba, you can do so through eToro. eToro is a highly user-friendly platform that allows you to get started on investing with as little as $50.

The Business

Alibaba is a Chinese multinational technology conglomerate founded in 1999 by Jack Ma and 17 others. It began as a platform to help Chinese small businesses connect with global buyers and has since grown into one of the world’s most extensive digital ecosystems. Its business spans e-commerce, cloud computing, logistics, digital media, and fintech. In commerce, Alibaba operates consumer-to-consumer and business-to-consumer marketplaces like Taobao and Tmall, as well as Alibaba.com for global B2B trade. It also runs international retail platforms such as AliExpress, Lazada, and Trendyol. These platforms are supported by Cainiao, a logistics arm that enables fast and integrated delivery services across China and beyond. The company also owns a stake in Ant Group, the operator of Alipay, one of the leading digital payment systems in China. Alibaba Cloud, its cloud computing division, is the largest provider in China and offers a broad suite of services including data storage, AI, and enterprise infrastructure. The group’s broader ecosystem includes online streaming through Youku, mapping and navigation via Amap, food delivery through Ele.me, and other local services. Alibaba earns most of its revenue from advertising and commission fees on its marketplaces rather than direct product sales, making its model asset-light and scalable. In 2023, it underwent a significant restructuring, splitting into six independent business groups to foster agility, unlock value, and enable some units to seek IPOs or outside investment. These six groups are Alibaba International Digital Commerce, which includes global platforms like AliExpress, Lazada, and Trendyol; Taobao and Tmall Group, which houses the company’s core domestic e-commerce platforms; Cainiao Smart Logistics, responsible for Alibaba’s logistics infrastructure and delivery network; Alibaba Cloud Intelligence, covering cloud computing, data intelligence, and AI solutions; Local Services Group, which includes on-demand services like food delivery and mapping through Ele.me and Amap; and Digital Media and Entertainment Group, which operates streaming, film, and content platforms such as Youku and Alibaba Pictures. Each of these business units has its own leadership and operational autonomy, allowing them to respond more nimbly to market dynamics and strategic opportunities. Alibaba’s competitive advantage lies in its large and engaged user base, with over 900 million annual active consumers in China alone. This creates strong network effects: more users attract more merchants, which leads to greater variety and higher customer retention. Its ecosystem is deeply integrated, combining e-commerce, logistics, payments, and cloud into a seamless experience that is difficult for competitors to replicate. Alibaba also benefits from economies of scale in marketing and technology, strong brand recognition, and substantial cash flows that it reinvests into innovation and long-term growth areas like AI and international expansion. These factors combine to give Alibaba a durable moat across multiple segments of the digital economy.

Management

Eddie Yongming Wu serves as the CEO of Alibaba Group, a position he assumed in September 2023. He is one of Alibaba’s original co-founders and has played a critical role in the company’s evolution from a small startup into a global technology conglomerate. Eddie Wu graduated with a degree in computer science from the College of Information Engineering at Zhejiang University of Technology and has been deeply involved in Alibaba’s technology and product development since its inception. Throughout his career at Alibaba, Eddie Wu has held a number of key leadership roles, particularly in product and technology management. He was instrumental in the early development and monetization of Taobao, Alibaba’s flagship consumer-to-consumer marketplace, and later contributed to the growth of Alipay, the digital payments platform operated by Alibaba’s affiliate, Ant Group. His work helped lay the foundation for Alibaba’s platform-based model and its digital payments ecosystem, both of which have become core pillars of the company’s success. Before being appointed CEO, Eddie Wu served as Chairman of Taobao and Tmall Group, overseeing Alibaba’s domestic e-commerce operations. He also led Alibaba Health and was the founding CTO of Alipay, giving him a broad perspective across the group’s core businesses. Having witnessed and contributed to the company’s journey from zero revenue to tens of billions of dollars, he brings deep institutional knowledge and a long-term founder’s mindset to the CEO role. Though still early in his tenure as CEO, Eddie Wu has laid out two long-term strategic priorities for Alibaba: “user first” and “AI-driven.” He has emphasized a renewed focus on improving user experience and operational efficiency while placing artificial intelligence at the center of the company’s transformation. In one of his first major public statements as CEO, he noted that “over the next decade, the most significant catalyst for change will be the disruptions caused by AI in all sectors” and warned that “if we fail to keep pace with the advancements of the AI era, we will be displaced.” Eddie Wu’s emphasis on AI reflects both his technical roots and his forward-looking leadership philosophy. While it is too early to fully assess his performance as CEO, his track record of success within Alibaba, his role in scaling core platforms like Taobao and Alipay, and his strategic clarity suggest that he is well-positioned to guide Alibaba through its next phase of innovation and growth.

The Numbers

The first number we will look into is the return on invested capital, also known as ROIC. We want to see a 10-year history, with all numbers exceeding 10% in each year. ROIC has historically been lower than you would like to see, with Alibaba only exceeding 10% twice in the past decade. Several factors contribute to this modest performance. One reason is Alibaba’s capital-intensive investments. The company has poured significant resources into logistics (Cainiao), cloud computing (Alibaba Cloud), and international expansion. These areas require substantial upfront capital and often have longer payback periods, which can weigh on ROIC in the short term. Another factor is regulatory pressure. Alibaba has faced heightened scrutiny from Chinese authorities in recent years, including antitrust investigations and the suspension of Ant Group’s IPO. These challenges have led to fines, compliance costs, and business adjustments, all of which have impacted profitability. Economic conditions have also played a role. Slowing growth and reduced consumer spending in China - particularly following the pandemic - have affected Alibaba’s core e-commerce business, pressuring margins and return metrics. While the low ROIC may raise some concerns, it isn’t necessarily a red flag if you believe these investments will mature over time and start generating stronger returns. That scenario remains plausible, especially as Alibaba’s leadership has made improving ROIC a stated priority. Joe Tsai, the company’s chairman, has said that enhancing ROIC is a key focus, with efforts underway to evaluate the performance of each business unit and allocate capital more efficiently. Encouragingly, ROIC has improved over the past three years. In fiscal year 2025, it reached its highest level since 2018, suggesting that the company’s shift toward capital discipline and operational focus may be starting to bear fruit.

The next numbers are the book value + dividend. In my old format this was known as the equity growth rate. It was the most important of the four growth rates I used to use in my analyses, which is why I will continue to use it moving forward. As you are used to see the numbers in percentage, I have decided to share both the numbers and the percentage growth year over year. To put it simply, equity is the part of the company that belongs to its shareholders – like the portion of a house you truly own after paying off part of the mortgage. Growing equity over time means the company is becoming more valuable for its owners. So, when we track book value plus dividends, we’re essentially looking at how much value is being built for shareholders year after year. Equity at Alibaba grew steadily until fiscal year 2022 because the company was earning strong profits and reinvesting much of that money back into the business. Its core platforms like Taobao and Tmall were growing rapidly, and newer areas like Alibaba Cloud were also expanding. These profits added to the company’s value over time. In addition, many of Alibaba’s investments gained value as the broader tech market was booming, and the overall business environment in China was favorable. However, over the past three years, equity has declined. Part of this is due to lower profits as growth slowed and economic conditions in China became more challenging. Some of the businesses Alibaba invested in also lost value, leading the company to adjust their worth on the books, which brings down overall equity. On top of that, changes in global currency values affected how much Alibaba’s overseas assets were worth when measured in Chinese yuan. All of this has added up to a steady drop in equity in recent years. The decrease in equity isn’t a major concern because it mostly comes from changes in how some investments are valued on paper, not from real financial trouble, and Alibaba still runs a strong business with healthy profits and cash.

Finally, we will analyze the free cash flow. Free cash flow, in short, refers to the cash that a company generates after covering its operating expenses and capital expenditures. I use levered free cash flow margin because I believe that margins provide a better understanding of the numbers. Free cash flow yield refers to the amount of free cash flow per share that a company is expected to generate in relation to its market value per share. It’s not surprising that Alibaba has delivered positive free cash flow every year over the past decade. However, it is notable that free cash flow in fiscal year 2025 fell to its lowest level since 2017. The primary reason for this decline was a sharp increase in capital expenditures, particularly in cloud infrastructure. Capital spending rose by 138% year over year, as Alibaba invested heavily in building out its cloud and artificial intelligence capabilities. This reflects the company’s commitment to maintaining a leadership position in these strategic areas, though it has weighed on free cash flow in the short term. Since these investments are aimed at strengthening long-term competitiveness, the decline is not a concern for me. What is more concerning is the significant drop in the levered free cash flow margin since the pandemic. Several factors have contributed to this trend. First, increased capital expenditures related to Alibaba Cloud and AI infrastructure have reduced free cash flow relative to revenue. Second, competitive pressure from players like Pinduoduo, JD.com, and Douyin (TikTok) has led to higher spending on marketing and promotions to defend market share. Third, slower economic growth and weaker consumer spending in China have affected revenue growth and overall profitability, especially in Alibaba’s core e-commerce segment. Management has acknowledged the pressure on free cash flow margins and stated that current investments are expected to deliver long-term returns. As these investments begin to pay off, the company expects margins to improve. With stronger free cash flow over time, investors should also see continued dividend growth and further share buybacks. The free cash flow yield is currently at its lowest level since the pandemic. While this would typically suggest that shares are priced at a premium, that may not be the case for Alibaba, as fiscal year 2025 free cash flow was significantly affected by unusually high capital expenditures tied to long-term strategic investments. We will revisit valuation later in the analysis.

Debt

Another important aspect to consider is the level of debt, and it is crucial to determine whether a business has manageable debt that can be repaid within a period of three years. We do this by dividing the total long-term debt by current earnings. Having done the calculations for Alibaba, it shows that the company could pay off its debt in just 1,72 years, which is well below the three-year threshold. In addition, Alibaba holds a substantial cash balance, which provides even more financial flexibility and further reduces any concerns about its debt load. For these reasons, debt is not a concern for me as an investor in Alibaba.

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Risks

Competition is one of the most significant risks facing Alibaba. The company operates in highly dynamic markets, particularly in e-commerce and cloud computing, where rivals are constantly innovating and aggressively fighting for market share. According to Alibaba, it competes with both domestic and international players across a wide range of sectors, including internet platforms, e-commerce marketplaces, logistics networks, cloud providers, and digital media services. Many of these competitors have strong brand recognition, advanced technologies, and deep financial resources, allowing them to attract users, merchants, and advertisers at scale. In China’s domestic e-commerce market, which is Alibaba’s largest source of revenue, competition has intensified in recent years. Taobao and Tmall are now facing serious challenges from platforms like Pinduoduo and JD.com. Pinduoduo has gained traction by offering very low prices and appealing to value-focused consumers in smaller cities through its social commerce model. JD.com continues to build customer loyalty through its reliable logistics and emphasis on product quality. More recently, ByteDance’s Douyin, the Chinese version of TikTok, has become a major player in livestream-driven e-commerce, adding even more competitive pressure. This rising competition has raised concerns about the possibility of price wars, which could hurt Alibaba’s profit margins. Management has said they do not plan to engage in aggressive discounting, but if competitors continue to lower prices or gain more users, Alibaba may be forced to respond by increasing spending on marketing, promotions, and other incentives to maintain its market position. This is especially important for Taobao and Tmall, which are key profit drivers for the group. Outside of China, Alibaba also faces tough competition in international markets. Its overseas platforms, such as Lazada and AliExpress, are competing with Shopee from Sea Group in Southeast Asia and with Amazon in multiple regions. In cloud computing, Alibaba Cloud is the market leader in China, but it must compete with Tencent Cloud and Huawei Cloud locally, and with Amazon Web Services, Microsoft Azure, and Google Cloud across the Asia-Pacific region. If Alibaba cannot keep up with advances in areas like cloud security or artificial intelligence, its growth in cloud services could slow.

Macroeconomic factors present a significant risk to Alibaba because its performance is closely tied to the overall health of the Chinese economy and consumer sentiment. As China’s largest e-commerce company, Alibaba depends heavily on domestic consumption to drive growth across its platforms. When Chinese consumers are confident and willing to spend, Alibaba’s marketplaces see rising transaction volumes, stronger advertising demand from merchants, and greater participation across its digital ecosystem. However, over the past few years, multiple macroeconomic headwinds have challenged that dynamic. Following years of rapid economic expansion, China has experienced a noticeable slowdown. The country has faced persistent challenges such as a slump in the property market, rising youth unemployment, and the lingering effects of strict pandemic-era restrictions. These factors have weighed on consumer confidence and spending behavior. Retail sales growth has remained subdued, and consumers have shown a tendency to save rather than spend - even though Chinese households are holding record levels of bank deposits. Alibaba’s management has acknowledged that spending behavior is strongly tied to consumer confidence, which remains fragile despite efforts by Chinese officials to stimulate domestic demand. If China’s GDP growth continues to slow - or in a more severe scenario, if there were a recession or financial crisis - Alibaba would likely see weaker growth in gross merchandise volume, lower advertising budgets from merchants, and softer demand across discretionary categories. This would directly affect revenue and profit growth in its core commerce segment. While Alibaba could benefit if China’s economy reaccelerates or if government stimulus efforts gain traction, macroeconomic conditions remain a source of uncertainty. For investors, this means Alibaba’s future growth is not only dependent on company-specific execution but also on broader economic and policy developments that are beyond its control.

Regulatory and political risks remain one of the most significant challenges facing Alibaba, both in China and internationally. As one of the most prominent technology companies in China, Alibaba operates under close scrutiny from regulators and is highly exposed to shifts in government policy and enforcement priorities. In 2021, the company was hit with a record ¥18 billion (approximately $2,8 billion) antitrust fine after Chinese authorities determined it had abused its market dominance. This marked the beginning of a broader regulatory crackdown on large internet platforms in China, driven by concerns over data privacy, market competition, and the government’s “common prosperity” campaign. Since then, authorities have introduced tighter rules on how online platforms can operate, including restrictions on exclusivity practices, more oversight of algorithm use, and increased data protection requirements. These types of regulatory changes can force Alibaba to adjust its business practices, increase compliance spending, or even shift its long-term strategy, all of which can impact profitability. One of the clearest examples of regulatory impact is the halted IPO and forced restructuring of Ant Group, Alibaba’s fintech affiliate and operator of Alipay. The abrupt suspension of what would have been the world’s largest IPO highlighted the extent to which policy can abruptly alter the trajectory of Alibaba’s ecosystem. Ant has since been subject to greater financial oversight, reducing its profitability and weakening the synergy it once provided to Alibaba’s commerce and payments ecosystem. Any further tightening in fintech regulations could affect the value of Alibaba’s stake in Ant Group and its ability to integrate financial services across its platform. Internationally, Alibaba also faces risks tied to geopolitical tensions - particularly between the U.S. and China. Its U.S.-listed shares were at risk of delisting under the Holding Foreign Companies Accountable Act, which requires U.S. regulators to have full access to audit documents of foreign companies. While a 2022 agreement allowed U.S. authorities to inspect Chinese audits and temporarily eased delisting fears, this risk could resurface if political relations deteriorate or if compliance efforts falter. Additionally, U.S. export controls on advanced technologies -such as restrictions on high-end semiconductors used in AI and cloud infrastructure - could affect Alibaba’s ability to innovate or expand its cloud computing business.

Reasons to invest

AI and Cloud is a reason to invest in Alibaba because these segments represent some of the company’s most promising long-term growth opportunities. Alibaba has identified artificial intelligence as a historic opportunity and is investing heavily in AI infrastructure, cloud computing, and foundational research to strengthen its leadership in China’s tech industry and beyond. What makes this especially compelling is the shift in where that demand is coming from. While early adopters of AI were mainly digital-native companies in sectors like internet services, fintech, and online education, Alibaba is now seeing rapid adoption across more traditional industries. Manufacturing, agriculture, and even small businesses are increasingly turning to AI-powered solutions - and migrating to Alibaba Cloud in the process. This broadening use of AI creates a powerful flywheel effect for Alibaba, as companies that once operated offline or used in-house servers now rely on Alibaba’s cloud infrastructure for advanced computing, model training, and data integration. A major part of Alibaba’s AI strategy is the development and open-sourcing of its Qwen model family. With over 200 Qwen models and more than 300 million downloads, it has become the world’s largest open-source model family. The next-generation Qwen3 models reinforces Alibaba’s leadership in AI research and gives developers, startups, and enterprises flexible tools to build tailored AI applications - many of which run best on Alibaba Cloud, creating additional demand for cloud services. Crucially, Alibaba is backing this technological ambition with financial strength. Its strong net cash position and healthy operating cash flow give it the flexibility to continue investing in cloud and AI infrastructure at scale. Management has expressed confidence that demand for AI services will continue to accelerate, and the company is actively building the capabilities to meet that demand over the next decade.

Growing monetization of Taobao and Tmall Group is a reason to invest in Alibaba because it shows the company’s ability to earn more from its existing user and merchant ecosystem without relying solely on expanding its user base. Taobao and Tmall remain the core of Alibaba’s business, and recent developments indicate the company is strengthening its ability to monetize traffic while enhancing the overall user and merchant experience. One major driver of improved monetization is the relatively recent introduction of a software service fee on Taobao, where previously there had been no fee at all. This change reflects a shift toward more consistent and structured revenue capture across the platform. Since the fee was only introduced last year, it is still in the early stages of rollout. During the initial phase, Alibaba offered rebates to support merchants through the transition, but these are now being gradually phased out. As the rollout continues and rebates are reduced, the software service fee is expected to contribute more meaningfully to net revenue over time. Another important reason for the improvement in monetization is the growing use of Alibaba’s advertising tool called Quanzhantui (QZT). This tool helps merchants run their marketing campaigns more easily and effectively. It has been especially useful for smaller sellers and merchants who previously didn’t spend much on advertising. Thanks to QZT, many of these sellers are now starting to invest more in promoting their products on Alibaba’s platforms. This means Alibaba is now earning advertising revenue from a group of merchants that didn’t contribute much in the past, adding new sources of income that weren’t there before. What makes this progress especially valuable is that it’s happening alongside improvements in user engagement. The number of 88VIP members - Alibaba’s premium loyalty program - has continued to grow and now exceeds 50 million. These users are more active and spend more on average, creating a more monetizable base for Alibaba’s services. Importantly, management has made it clear that while growing market share remains a priority, increasing monetization efficiency is equally important. The company is actively testing new monetization approaches, including AI-driven models, to continue expanding revenue per user and per merchant without compromising the overall experience.

Instant e-commerce, also known as quick commerce, is a compelling reason to invest in Alibaba because it taps into a massive, fast-growing market and strengthens the company’s position in high-frequency retail. Unlike traditional online shopping, which often involves delivery times of one to several days, instant e-commerce focuses on delivering goods within hours or even minutes. This includes everyday items such as groceries, snacks, toiletries, and other convenience-driven purchases - things consumers want quickly and repeatedly. Management sees instant commerce as a long-term growth opportunity with enormous potential. Today, it’s already serving hundreds of millions of consumers in China, and the addressable market could reach as many as one billion people. This demand spans across demographics and regions, making it one of the most universally relevant segments in China’s retail landscape. Importantly, Alibaba is well-positioned to lead in this space because it already has a strong foundation in place: a large and loyal user base on the Taobao platform, a mature and experienced network of merchants, and a robust logistics infrastructure that can support rapid delivery. Initial trials of Taobao’s instant commerce service, known as Taobao Shanguo, have significantly outperformed expectations in both scale and efficiency. Users who try the service show high levels of engagement and tend to return frequently, confirming that instant commerce increases app stickiness and daily usage. For Alibaba, this is not just about opening a new revenue stream, it is about making the Taobao app more relevant in consumers’ daily lives. By integrating fast, frequent shopping experiences into Taobao, Alibaba can drive more user traffic, increase customer lifetime value, and deepen platform engagement. Furthermore, this shift aligns with global trends. As Jeff Bezos and Amazon have emphasized for years, faster delivery dramatically improves customer satisfaction and retention. Alibaba is now applying this lesson to the Chinese market, using speed as a new driver of differentiation and loyalty.

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Valuation

Now it is time to calculate the share price. I perform three different calculations that I learned at a Phil Town seminar. If you want to make the calculations yourself for this or other stocks, you can do so through the tools page on my website, where you have access to all three calculators for free.

I perform three different calculations that I learned at a Phil Town seminar. The first is called the Margin of Safety price, which is calculated based on earnings per share (EPS), estimated future EPS growth, and estimated future price-to-earnings ratio (P/E). The minimum acceptable rate of return is 15%. I chose to use an EPS of 7,38, which is from fiscal year 2025. I have selected a projected future EPS growth rate of 12%. (Finbox expects EPS to grow by 11,9% in the next five years) Additionally, I have chosen a projected future P/E ratio of 24, which is twice the growth rate. This decision is based on the fact that Alibaba has historically had a higher P/E ratio. Lastly, our minimum acceptable rate of return is already set at 15%. Doing the calculations, we come up with the sticker price (some call it fair value or intrinsic value) of $135,98. We want to have a margin of safety of 50%, so we will divide it by 2. This means that we want to buy Alibaba at a price of $67,99 (or lower, obviously) if we use the Margin of Safety price.

The second calculation is called the Ten Cap price. The rate of return that an owner of a company (or stock) receives on the purchase price of the company is essentially its return on investment. The return should be at least 10% annually, and I calculate it as follows: The operating cash flow last year was 22.522, and capital expenditures were 11.842. I attempted to review their annual report to determine the percentage of capital expenditures allocated to maintenance. I couldn't find it, but as a rule of thumb, you can expect that 70% of the capital expenditures will be allocated for maintenance purposes. This means that we will use 8.289 in our calculations. The tax provision was 4.882. We have 2.259 outstanding shares. Hence, the calculation will be as follows: (22.522 – 8.289 + 4.882) / 2.259 x 10 = $84,62 in Ten Cap price.

The final calculation is called the Payback Time price. It is a calculation based on the free cash flow per share. With Alibaba's Free Cash Flow Per Share at $4,73 and a growth rate of 12%, if you want to recoup your investment in 8 years, the Payback Time price is $65,16.

Conclusion

I believe that Alibaba is an intriguing company with strong management. The company has built a moat through its large and engaged user base, its deeply integrated ecosystem, and its economies of scale. While Alibaba has historically delivered a relatively low ROIC, management is focused on improving this metric, and the past three years suggest that the company is on the right track. Free cash flow declined significantly in fiscal year 2025, primarily due to much higher capital expenditures. These investments are expected to support future growth in both free cash flow and levered free cash flow margin. Competition is a major risk for Alibaba, as it faces strong rivals in both China and international markets across core areas like e-commerce and cloud computing. Rising pressure from platforms such as Pinduoduo, JD.com, Douyin, Amazon, and Shopee may require Alibaba to increase spending to defend market share, which could impact margins and profitability. Macroeconomic factors are also a risk, as Alibaba’s growth depends heavily on consumer spending and overall economic conditions in China. Slowing GDP growth, weak consumer confidence, and challenges such as the property market slump and youth unemployment could limit demand across its platforms. Regulatory and political risks remain a significant concern. Alibaba is highly exposed to changing government policies in China and ongoing geopolitical tensions. Past events, such as the record antitrust fine and the halted Ant Group IPO, show how quickly regulation can affect the company, while continued scrutiny and export restrictions may constrain its long-term growth. On the positive side, AI and cloud represent compelling reasons to invest. These areas are key long-term growth drivers, with adoption spreading across both digital-native and traditional industries. Backed by strong financial resources and leadership in open-source AI models, Alibaba is well-positioned to benefit as more businesses migrate to the cloud and integrate AI into their operations. Growing monetization of Taobao and Tmall Group is another reason to invest. It demonstrates Alibaba’s ability to increase revenue from existing users and merchants through service fees and improved advertising tools, without relying solely on expanding its user base. Instant e-commerce is an additional growth opportunity. It targets a large and rapidly expanding market for fast, everyday purchases, while driving more frequent engagement on the Taobao app. With a strong logistics network, a large user base, and early success from its Taobao Shanguo initiative, Alibaba is well-equipped to lead in this space. Overall, I believe Alibaba is a great company, and the financial figures in this analysis are influenced by unusually high capital expenditures in fiscal year 2025. Therefore, I believe buying shares at $104, which represents a 20% discount to the intrinsic value based on the Payback Time price, would be a strong long-term investment.

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