Family Offices Should Buy Alibaba

Family offices should consider investing in Alibaba stock for several compelling reasons:

Strong Growth Potential

•$52-56 billion investment in AI and cloud infrastructure over the next three years
•Projected 24% EPS growth and 5.95% revenue increase in fiscal 2025

Attractive Valuation and Strategic Moves

•Undervalued at 12x forward earnings
•Strategic partnership with Apple for AI services in China

Insider Confidence

•Co-founders Jack Ma and Joe Tsai bought $202 million in shares
•Joe Tsai’s family office purchased $152 million in Q4 2023

Long-Term Outlook

•Potential market recovery in 2025 due to China’s monetary policy
•Business diversification focusing on high-growth sectors
•Anticipated profitability in AI and Data Computing by fiscal 2026
•Structural rerating expected in 2025

Analyst Optimism

•J.P. Morgan advises long-term thinking
•Benchmark sets $190 per share target

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