Alibaba's AI Could Be Huge

Buy this stock or avoid it in 2025?

March 02, 2025

Early Bird Prime for March 2, 2025 

Alibaba Group (NYSE: BABA), the tech behemoth from China, has been on an incredible ride. The stock is up 77.58% in the past year, including a 34% gain in the last 30 days.

The company recently announced it would invest $52 billion in AI and cloud infrastructure over the next three years. This move has analysts buzzing, with one from Bernstein upgrading the stock to "Outperform" from "Market-Perform" this week. Apparently, AI is the new black, and Alibaba is strutting down the runway.

But before you buy the stock, remember that what goes up must come down. Alibaba's stock hit a 52-week high in February, and while it’s tempting to think it’ll keep climbing, history has a funny way of reminding us that gravity exists. Could a price correction be looming?

Let’s not forget the ever-present specter of competition and geopolitics. Alibaba has a history of regulatory scrutiny, and investors can’t afford to ignore these potential pitfalls.

Should you buy Alibaba’s stock now in 2025, or should you avoid the stock? Here’s the answer:

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