Why Alibaba stocks were spiked on Friday
Alibaba (NYSE: Baby) NYSE’s early trading on Friday saw its share price rise by more than 7%, then turned its tail and returned nearly half of its profit. As of 11:05am ET, stocks in the Chinese e-commerce and tech giant still had a 4.1% increase. The problem now is:
Is Alibaba stock worthy of even this one to keep happening? Because today’s wild ride in Alibaba stock appears to stem entirely from competing rumors about the Chinese artificial intelligence wonders deepseek.
Remember, last week, Deepseek repeated stock markets across the US. Best LLMS Its Openai, humanity, and even alphabet It must be provided.
Well, Chinese investors have noticed this too. It wasn’t long before Alibaba unveiled its own AI product, which he said “does surpass Deepseek’s AI models in various benchmarks.” A few days later, Alibaba replaced the tack and started hosting DeepSeek on its own cloud server. And today, several Chinese press outlets report that Alibaba plans to invest $1 billion in its own money in Deepseek!
There is only one wrinkle. Alibaba has denied the rumors, according to a Reuters report that was just filed. “Chinese news outlet The Paper” and Reuters said, “The news that Alibaba will invest in Deepseek is fake news.”
So, where does this leave Alibaba investors? Assume that Alibaba’s Veep is on the board and not just playing word games (for example, if Alibaba has already Invest in Deepseek and then the news Intention Investment may not be true). In that case, you will probably not be able to invest in a privately owned Deepshek by purchasing Alibaba shares.
You’re still can But Alibaba itself. And that may not be a bad idea as it is forecast to only 20x revenue, and free cash flow is 16x and long-term growth is projected at 18.5%.
Consider this before purchasing shares in Alibaba Group.
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