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Yahoo
17-07-2025
- Business
- Yahoo
2 Stocks That Could Create Lasting Generational Wealth
Key Points Alibaba's ability to drive growth with its AI technology is undervalued by investors right now. Toast continues to demonstrate tremendous growth potential with its cloud-based restaurant management platform. 10 stocks we like better than Alibaba Group › Identifying competitively strong companies that are showing strong growth can point you toward future winners. As long as you keep a long-term mindset, sticking with quality growth stocks over many years can pay off handsomely. To help you in your search, here are two stocks that appear poised for outstanding returns over the next decade. 1. Alibaba Alibaba (NYSE: BABA) is a leading Chinese tech giant, with a strong market presence across e-commerce, cloud computing, and artificial intelligence (AI). The company is starting to show signs of recovery after a sluggish few years due to a weak economy and increasing competition in e-commerce. The shares are up 28% year to date, but still trade at a valuation that may significantly undervalue Alibaba's prospects, especially in AI. The stock currently trades at just 14 times trailing 12-month earnings. But this looks very modest given the company's 23% year-over-year increase in earnings in the most recent quarter. Alibaba still has a lot of opportunity in e-commerce. Its Taobao and Tmall marketplaces posted a 12% increase in customer management revenue last quarter. This business generates very high profit margins, since it generates revenue from merchant fees. The AliExpress platform has attractive growth opportunities internationally, where the international digital commerce group posted a revenue increase of 22% year over year. Alibaba credits investments in AI for driving consumer spending across its online marketplaces. This reflects growing momentum with AI technology in its cloud business, where it has seen triple-digit growth in AI-related services. Overall, its cloud intelligence group posted an 18% year-over-year increase in revenue last quarter. As a leader in cloud computing, Alibaba is competitively positioned to leverage cutting-edge technologies to benefit its e-commerce business, while also benefiting from growing demand for enterprise cloud services. Management has been buying back shares, signaling that the stock is undervalued right now. Based on this year's consensus earnings forecast on Wall Street, the stock trades at a cheap forward price-to-earnings multiple of 12. That's a bargain for one of the world's leading tech giants and could lay a foundation for significant outperformance of the market averages over the next decade. 2. Toast The restaurant industry is adopting more cloud-based management solutions. There are a lot of companies competing for a share of this market, but Toast (NYSE: TOST) is standing out. It has delivered consistent, strong revenue growth in recent years and is well positioned to be an industry leader. Toast offers a comprehensive point-of-sale system covering payments, ordering, and marketing, and it offers tailored solutions for different markets ranging from pizzerias to hotels. While Toast's premium pricing can be a turnoff for some managers, especially when there are other solid options on the market, customer reviews show it is very user-friendly, which makes it a popular choice for employees. Thousands of new restaurants are choosing to sign up for Toast every quarter, indicating a competitive advantage. The company added 6,000 net new locations in the first quarter, bringing its total to around 140,000. Recent notable deals included Applebee's and Topgolf. As a relatively small software-as-a-service business, Toast has historically not reported a profit, as it invests in expansion. But it's starting to turn the corner, with net income improving to $43 million in Q1, reversing the $56 million loss in the year-ago quarter. On a trailing 12-month basis, net income reached $158 million, and this is driving the stock higher. Toast is expanding rapidly in an industry with more than 14 million employees and contributing around $3.5 trillion to the U.S. economy. With the company's market cap at just $25 billion, it's easy to see Toast's business growing to be worth significantly more in the next few decades. Should you buy stock in Alibaba Group right now? Before you buy stock in Alibaba Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alibaba Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,308!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Toast. The Motley Fool recommends Alibaba Group and Topgolf Callaway Brands. The Motley Fool has a disclosure policy. 2 Stocks That Could Create Lasting Generational Wealth was originally published by The Motley Fool
Yahoo
10-07-2025
- Business
- Yahoo
Chinese Investors Are Dumping Alibaba Stock Despite Wall Street's High Praise. Should You?
Alibaba (BABA) has long been a star in China's tech sector and its premier e-commerce and cloud businesses have also attracted international investor attention. That star status could be rapidly changing. Despite healthy analyst sentiment and positive earnings, new market data reveals that mainland Chinese investors are abandoning Asia's biggest tech stocks, including Alibaba. In a mere month in June, they sold nearly $6 billion of shares in Alibaba, Tencent (TCEHY), and Xiaomi (XIACY) through Hong Kong-based trading connections. This Underdog AI Stock Just Got a New Street-High Price Target Texas Just Passed Quantum Computing Legislation. How Should You Play IONQ Stock Here? 'The Most Patriotic Thing You Can Do Is Not Pay the IRS' Says Grant Cardone as OBBBA Signed into Law — Here's How Much You'll Save Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! This development comes as Alibaba shares have already fallen behind their peers, depressed by soft catalysts and conservative Chinese consumer sentiment. This disconnect between Wall Street enthusiasm and local selling pressure is worth exploring here. Alibaba is one of the largest tech and e-commerce companies in the world with a market capitalization of roughly $258 billion. Alibaba runs a variety of businesses ranging from its flagship Taobao and Tmall marketplaces to its increasingly expanding Cloud Intelligence Group. It is a cornerstone of China's digital economy. Alibaba shares have traded between $73.87 and $148.43 over the past 52 weeks and are now trading near $104. Shares are up about 22.5% in the year to date, vastly outperforming the S&P 500 Index ($SPX). From a valuation standpoint, Alibaba trades at a price-earnings multiple of 11.3x and a price-sales ratio of about 1.85x, ratios that appear reasonable compared to its competitors and its own past values. Its price-earnings-to-growth (PEG) multiple is 0.46x, which suggests potential undervaluation if earnings growth remains as expected. Alibaba released fiscal Q4 results recently, beating Wall Street estimates. Quarterly revenue was 7% ahead year-over-year to $32.6 billion, and was driven by 12% growth in customer management revenue from Taobao and Tmall and 18% revenue growth from Cloud Intelligence. AI-related sales showed triple-digit growth for the seventh consecutive quarter. Adjusted EBIT was up 36% quarter over quarter, and net income surged to a record $1.7 billion, a 1,203% increase compared with a year ago, fueled in part by mark-to-market gains. Diluted EPS were $0.71 and adjusted earnings per ADS were $1.73, up 23% from the prior-year period. Wall Street remains bullish on Alibaba shares with a consensus 'Strong Buy' rating. Nearly two dozen analysts cover its shares, and most of them remain positive about its massive potential gains despite the local selling trend. Its median price target of $163.12 implies nearly 60% upside potential from here. On the date of publication, Yiannis Zourmpanos did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Nikkei Asia
03-07-2025
- Business
- Nikkei Asia
China to ban forced excessive discounting at online retailers
A pedestrian walks by a Shanghai sign advertising discounts on Alibaba's Tmall online marketplace. (Photo by Tomoko Wakasugi) KENTARO SHIOZAKI and TOMOKO WAKASUGI BEIJING/SHANGHAI -- Chinese authorities plan to crack down harder against online retail platforms that force third-party merchants into a race to the bottom on prices. Under an amended unfair competition law scheduled to go into effect Oct. 15, online retailers will no longer be able to coerce vendors to mark down products and services below cost, or engage in other practices that "disrupt market order."
Yahoo
03-07-2025
- Business
- Yahoo
China Insight: What the 618 Shopping Festival Says About China's Retail Landscape
The June 18 Shopping Festival — once a high-decibel race for Gross Merchandise Volume — took a markedly different tone this year, reflecting deep shifts in China's fashion retail landscape. Underneath the transactional data, three key themes emerged: a pivot to quality-driven growth, the rapid rise of on-demand retail, and the emotional economy's increasing grip on consumer behavior. The numbers were strong — but more nuanced. Tmall reported 453 brands surpassing 100 million renminbi, or about $14 million, in transaction volume, a 24 percent year-over-year increase. doubled its user order volume from 2024, led by surging sales in apparel, beauty and daily essentials. Douyin's e-commerce arm saw more than 60,000 brands double their GMV, with 236 surpassing the 100 million renminbi mark via livestreaming. More from WWD MAC Cosmetics Debuts 'Musical Spaceship' Concept For Nanjing Flagship A Stream of Ceramics: How a Quiet Chinese Factory Town Became a Cultural Tourism Hub Me+Em to Open in Manchester Following Successful Retail Streak Even platforms traditionally outside the commerce core saw major growth: Rednote's livestream orders rose 9.4 times year-over-year, and Bilibili, capitalizing on its Gen Z community, posted a 146 percent increase in live-commerce GMV. WeChat Channels made a splash with a debut livestream starring Christy Chung, racking up over 10 million views and more than 7 million renminbi, or about $1 million, in sales. The Rednote + Tmall sales hints were centered around the 'trust' economy. Beneath the headlines, the landscape is changing. This year's 618 was no longer just about deals and delivery — it became a mirror for a broader redefinition of value and experience in the consumer mindset. Here, a look at some of the key trends emerging from the latest 618 Festival., 1. State-Led Consumption Upgrades Point to Quality-First Growth State-backed incentives played a decisive role in 618's success, shifting the focus from volume to value. Strategic subsidies, especially in categories like smart home and green tech, enabled consumers to trade up. High-ticket items such as AI-powered robotic vacuum cleaners saw renewed interest, with government-backed discounts helping bridge the price gap for quality consumption. This alignment of government policy, consumer demand, and platform strategy created a new model for 'tripartite synergy,' accelerating premiumization across categories. 2. On-Demand Retail Becomes a Growth Catalyst Real-time retail proved to be one of the strongest growth stories of the year. Apple saw record daily sales on Taobao Instant Retail, and brands like Decathlon leveraged Meituan's infrastructure to deliver running gear within 30 minutes — resulting in a 220 percent spike in same-day orders. Fashion labels such as Only and Jack & Jones embraced the 'online order + store direct delivery' model, slashing turnaround times to under 72 hours. Meanwhile, companies like PurCotton upgraded their logistics networks to meet localized, rapid fulfillment — achieving a 90 percent success rate within an 8-kilometer radius. Beyond convenience, on-demand retail is redefining fashion's supply chain — ushering in a new era of fragmented, hyperresponsive consumption. 3. The Emotional Economy Reshapes Fashion's Value Proposition If quality and speed are two legs of the new retail triangle, emotion is the third. The emotional economy powered breakout moments during 618 — from reed diffuser brand ToSummer topping its category with sensory-driven branding, to Atour Hotel's sleep-enhancing product line nearing core business revenue. In beauty, Proya crossed the 100 million renminbi sales threshold within 10 minutes of launch. Its antiaging portfolio, aligned with prevailing consumer anxieties and aspirations, positioned it as a top performer once again. Chinese consumers are increasingly seeking emotional resonance over logos — valuing lifestyle alignment, storytelling and psychological uplift. This shift was reflected in brand preference data: 70 percent of top 100 brands were domestic, while more than 60 percent of Tmall's 100 million renminbi club comprised Chinese names. 4. A Glimpse Into the Next Chapter The 618 Festival revealed more than just short-term sales surges — it signaled the emergence of new rules shaping China's retail future. State stimulus, on-demand infrastructure, affective consumption, and homegrown innovation are reshaping consumer expectations and fashion's business logic. For global and local players alike, the message is clear: competing in China now means playing by a different rulebook — one that values connection over conversion, responsiveness over repetition, and trust over transaction. Editor's Note: China Insight is a monthly column from WWD's sister publication WWD China on trends in that all-important market. Best of WWD The Definitive Timeline for Sean 'Diddy' Combs' Sean John Fashion Brand: Lawsuits, Runway Shows and Who Owns It Now What the Highest-paid CEOs at U.S. Fashion and Retail Companies Make Confidence Holds Up, But How Much Can Consumers Take?
Yahoo
24-06-2025
- Business
- Yahoo
Citi: Alibaba Stock Could Surge 50% After Blockbuster 6.18 Festival
June 23 Alibaba (NYSE:BABA) may see a lift in core marketing revenue after reporting its strongest growth in gross merchandise value (GMV) in three years during the recent 6.18 shopping event, according to a Sunday note from Citigroup (NYSE:C). Citi analyst Alicia Yap reaffirmed her "Buy" rating on the stock with a price target of $169, projecting nearly 50% upside from current levels. She said the latest festival results, combined with upbeat retail trends in April and May, could push Q1 FY26 revenue growth beyond current estimates. Warning! GuruFocus has detected 3 Warning Signs with BABA. Tmall President Liu Bo said GMV rose 10% year-over-year, highlighting robust merchant sales. He credited China's trade-in subsidy policy and immediate 10% price discounts as key drivers, which helped improve conversion and reduce returns. The 6.18 event spanned late May to mid-June. Yap noted early traction from Alibaba's Taobao Quick Commerce and emphasized that AliExpress showed strong global engagement, with livestreams attracting hundreds of thousands of users and some products selling out in markets like the UK and Australia. The company is now positioning for its next major event, Singles' Day on Nov. 11, by doubling down on high-quality growth strategies. This report reflects optimism around Alibaba's rebound as it sharpens its domestic and international e-commerce focus. This article first appeared on GuruFocus.
