r/baba
Alibaba shares fall as China plans $295B AI buildout
Alibaba shares drop on fears China's $295B state-backed AI buildout will undercut its cloud business, though analysts see upside.
- Analysts expect public and private AI capacity to serve different markets.
- The state-backed buildout could lower Alibaba's capital spending and boost efficiency.
- Investors fear state-backed capacity could undercut private cloud providers.
- Shares dropped about 3% in premarket trading due to these competition concerns.
Massive AI investment: Beijing is preparing a $295B, five-year plan to build interconnected AI data centers, sourcing at least 80% of tech domestically.
Alibaba shares drop: Investors fear state-backed capacity could undercut private cloud providers, sending Alibaba stock down about 3% in premarket trading.
Analysts see upside: Some analysts expect public and private capacity to serve different markets, potentially lowering Alibaba's capital spending and boosting efficiency.
https://preview.redd.it/8053vsn5zm6h1.jpeg?width=691&format=pjpg&auto=webp&s=d1721f7c4f107a35d677169bd19ed380dacdf1c4
It's definitely time to buy. 200 USD by end of 2027.
First cloud now AI. Chyna doesn’t give a shit about their tech companies.
It’s actually both. They want SOEs to succeed because it keeps the CCP in power. But they need private tech to succeed because they want to be competitive with the U.S.
They want tech to be successful not shareholders to thrive
They are seeking a super intelligence to succeed Xi and teach the true meaning of Communism.
Will we be hearing "delisting" threats again soon?