China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

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Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

Equity Bottom-Up

<ul>
<li>After rallying ~50% from its lows, Alibaba rallied another ~10% after reporting in-line result, despite saying it would spend more capex in the next 3 years than the previous 10; </li>
<li>Behind this performance is a sudden clarification of AI's monetization future in China. Alibaba's vision certainly has itself at the center of beneficiary, but a few other readings also exist;</li>
<li>Alibaba suggested that partial replacement of human worker is possible in a platform with structured workflow, allowing AI users to reap benefits earlier than we have anticipated. </li>
</ul>


After rallying ~50% from its lows, Alibaba rallied another ~10% after reporting in-line result, despite saying it would spend more capex in the next 3 years than the previous 10; 
Behind this performance is a sudden clarification of AI's monetization future in China. Alibaba's vision certainly has itself at the center of beneficiary, but a few other readings also exist;
Alibaba suggested that partial replacement of human worker is possible in a platform with structured workflow, allowing AI users to reap benefits earlier than we have anticipated. 


Alibaba's C4Q24 Result Says the Inflection Point of Chinese AI Has Arrived for the Capital Markets