Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. The company operates through seven segments: China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others. It operates Taobao and Tmall, which are digital retail platforms; Alimama, a proprietary monetization platform; 1688.com and Alibaba.com, which are online wholesale marketplaces; AliExpress, a retail marketplace; Lazada, Trendyol, and Daraz that are e-commerce platforms; Freshippo, a retail platform for groceries and fresh goods; and Tmall Global, an import e-commerce platform. The company also operates Cainiao Network logistic services platform; Ele.me, an on-demand delivery and local services platform; Koubei, a restaurant and local services guide platform; and Fliggy, an online travel platform. In addition, it offers pay-for-performance, in-feed, and display marketing services; and Taobao Ad Network and Exchange, a real-time online bidding marketing exchange. Further, the company provides elastic computing, storage, network, security, database, big data, and IoT services; and hardware, software license, software installation, and application development and maintenance services. Additionally, it operates Youku, an online video platform; Quark, a platform for information search, storage, and consumption; Alibaba Pictures and other content platforms that provide online videos, films, live events, news feeds, literature, music, and others; Amap, a mobile digital map, navigation, and real-time traffic information app; DingTalk, a business efficiency mobile app; and Tmall Genie smart speaker. The company was incorporated in 1999 and is based in Hangzhou, the People's Republic of China.

Alibaba appears to be a large and financially stable business, but its current valuation no longer looks cheap across a number of key multiples. P/E of 25.22 is 29.3% above the industry median, P/S of 2.32 is 236.2% above the median, and P/FCF of 20.74 is also above the industry level, which limits the potential for aggressive upside. At the same time, P/B of 1.37 is 24.5% below the median, and the debt burden is moderate: debt/equity of 0.21 is well below the industry level, which reduces financial risk. Liquidity is generally acceptable with a current ratio of 1.46, but the quick ratio is 0.00, so the cushion in the most liquid assets looks weak. Profitability is mixed: ROA of 5.75 is above the median, and net margin of 10.35 is also strong, but ROE of 9.82, ROI of 6.95, and return on tangible equity of 15.31 are below industry benchmarks, while operating margin of 5.83 has declined significantly. The trend in operating efficiency over recent periods has worsened: operating income and EBITDA have fallen relative to stronger quarters, indicating pressure on operating leverage. Revenue, however, is growing and remains at a high level, while total assets and equity continue to increase, supporting the long-term resilience of the balance sheet. Net income and operating income in the latest period look weaker than in earlier quarters, so the quality of current earnings does not show a sustained acceleration. Dividend yield of 0.94% remains modest and is not a strong argument for upward revaluation. Overall, the fundamentals support a moderately cautious view: the balance sheet and scale of the business are strong, but valuation on sales, earnings, and free cash flow no longer looks cheap, and operating margin and return on capital do not justify a significant increase in fair value. For an investor, this means the stock remains high quality, but re-rating potential is limited, and a restrained revision of expectations is more likely than a meaningful increase in the target price.

Alibaba Group Holding Limited

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно упал. Медведи в растерянности.

Strong index, slightly down. The bears are confused.

Средний индекс, незначительно вырос. Рынок не поддерживает быков.

Medium index, slightly up. The market does not support the bulls.

Средний индекс, незначительно упал. Рынок на стороне медведей.

Medium index, slightly down. The market is on the bears' side.

Слабый индекс, незначительно вырос

Слабый индекс, незначительно упал. Приток средств в шорты остался положительным, но снизился.

Weak index, slightly down. The inflow of funds into shorts remained positive, but decreased.

A strong balance sheet and revenue growth are combined with expensive valuation multiples and weakening operating margins, so the upside from revaluation appears limited.

Alibaba's BABA weakening cash flow could become a headwind to its long-term growth potential if heavy investments continue to outpace cash generation. The company generated solid revenue growth in fiscal 2026, but its cash generation deteriorated sharply as it accelerated spending on AI infrastructure, cloud capacity, quick commerce and the Qwen AI ecosystem. Operating cash flow declined 53% year over year in fiscal 2026, while free cash flow swung to an outflow of RMB46.6 billion from an inflow of RMB73.9 billion a year earlier. This decline is primarily due to investments in quick commerce, cloud infrastructure and Qwen user acquisition, underscoring that these initiatives remain strategic priorities despite near-term financial pressure.
At the same time, management indicated that AI demand will require an even larger data center footprint over the next five years, implying sustained capital commitments that could keep free cash flow under pressure. Although Alibaba maintains a strong balance sheet, including RMB520.8 billion of cash and other liquid investments, continued negative free cash flow may eventually reduce financial flexibility if investment returns take longer to materialize.
On the positive side, Cloud Intelligence revenues continue to accelerate, supported by robust AI adoption, suggesting these investments could generate meaningful long-term returns. However, investors should closely monitor whether improving cloud monetization and operating efficiencies can offset persistent cash outflows. Until Alibaba demonstrates consistent recovery in ‘free cash flow’ alongside AI-driven revenue growth, cash flow weakness will likely remain a significant negative factor affecting its long-term investment potential.
How Does Alibaba Stack Up Against Its Main Rivals?
Alphabet GOOGL generates substantially stronger operating cash flow than Alibaba, enabling larger AI and cloud investments without compromising financial flexibility. Alphabet produced $39.1 billion in operating cash flow in the second quarter of 2026 while expanding AI infrastructure and strengthening its global monetization engine. Alphabet's diversified Search, YouTube and Cloud businesses provide durable competitive advantages, whereas Alibaba's free cash flow remains under pressure from aggressive AI investment.
Amazon AMZN enjoys a stronger cash flow profile than Alibaba, supporting massive AI infrastructure spending backed by customer commitments and long-term returns. Amazon continues funding AWS, custom chips and logistics expansion while expecting future free cash flow acceleration. Amazon benefits from diversified businesses, scale and enterprise demand.
BABA’s Share Price Performance, Valuation & Estimates
BABA shares have declined 21.4% year to date compared with the industry’s fall of 4.1%.
BABA’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, BABA is currently trading at a price-to-book ratio of 1.7, below the sector’s average of 4.23. The company carries a Value Score of C.
BABA’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2027 and 2028 EPS has been revised downward over the past 30 and 60 days. The company has also missed earnings expectations in each of the trailing four quarters, with an average negative surprise of 37.65%.
Image Source: Zacks Investment Research
Alibaba currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Will Alibaba's Cash Flow Weakness Hurt Its Long-Term Growth Potential?

Oracle Corporation ORCL and Alibaba Group BABA sit at opposite ends of the globe but occupy strikingly similar ground in today's technology race. Both transformed from legacy roots, enterprise software for Oracle and e-commerce for Alibaba, into full-stack cloud and AI powerhouses, pouring billions into data centers, custom silicon, and language models.
The comparison feels especially timely now. Oracle just closed fiscal 2026 with record cloud growth and an unprecedented order backlog, while Alibaba wrapped its fiscal year with accelerating cloud and AI revenues even as profitability absorbed the cost of aggressive spending. Both companies have used recent weeks to unveil fresh AI models, chips and partnerships, underscoring how central this race is to their strategies.
Let's delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for ORCL Stock
Oracle delivered a standout fiscal 2026, with total revenues climbing 17% to a record $67.4 billion and cloud revenues surging 39% to $34 billion. The real headline, though, is Remaining Performance Obligations, which ended the year at $638 billion, up 363% year over year and $85 billion sequentially, reflecting a wave of large-scale AI contracts. Encouragingly, prepaid and customer-supplied hardware within these contracts now totals $75 billion, meaningfully easing the capital Oracle itself must raise to build out AI data centers. Momentum has carried into the new fiscal year.
At Google Cloud Next 2026, Oracle deepened its partnership with Google, integrating Gemini Enterprise directly with Oracle AI Database so customers can reason over business data without duplication. Oracle also expanded its NVIDIA collaboration for scalable AI supercomputing, launched an AI-native builder experience for Fusion Applications letting developers create agentic apps using familiar tools, expanded its Defense Ecosystem, and became a founding partner of IMSA Labs, applying racetrack telemetry to harden its Cloud Infrastructure. OCI continues broadening its AI stack too, adding models like GLM 5.2 and expanding governance and security controls for enterprise customers.
Management also flagged that a new AI-driven patient care management system should push Oracle Health's overall growth to double digits in fiscal 2027, and the company also plans to raise an additional $20 billion in equity and debt to keep pace with demand. With profit guidance raised alongside steady revenue guidance, Oracle's expanding backlog, capital-efficient contract structure and widening enterprise AI footprint make a compelling growth case.
The Zacks Consensus Estimate for ORCL’s fiscal 2027 earnings is pegged at $8.03, which suggests 5.24% growth over the figure reported in fiscal 2026.
Oracle Corporation Price and Consensus
The Case for BABA Stock
Alibaba's fiscal 2026 close showed genuine cloud and AI momentum alongside real financial strain. Cloud Intelligence Group external revenue growth accelerated to 40%, with AI-related products now representing 30% of that revenue, and international commerce wholesale revenues also rose 9% on stronger cross-border value-added services.
Alibaba has kept pace on models, unveiling Qwen3.7-Max in May and previewing the 2.4-trillion-parameter, fully multimodal Qwen3.8 at the World AI Conference in July, now accessible to developers through its Qoder coding platform, while its Zhenwu chips now power more than 100,000 deployments across over 30 automakers and autonomous-driving companies building intelligent-driving systems. The company also launched Accio Work, extending its established AI sourcing agent, Accio, into a fuller agentic platform covering the entire operating lifecycle of small cross-border businesses. Management struck a bullish long-term tone, expecting AI-related annualized recurring revenues to reach RMB30 billion by year-end and signaling that capital expenditure will likely overshoot its original three-year RMB380 billion target, since compute demand is expected to be tenfold 2022 levels within the coming years.
That conviction, however, comes with visible near-term costs. Overall revenues grew just 3% year over year, while adjusted EBITA and net income both fell sharply as spending on AI, cloud infrastructure and instant commerce competition intensified. Alibaba did approve an annual dividend of $1.05 per ADS for fiscal 2026, a modest shareholder-friendly offset. The overall setup still leaves Alibaba with credible AI upside tempered by real near-term margin pressure and a still-escalating, open-ended investment cycle whose payoff timeline remains uncertain.
The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $6.88 per share, down 5.2% over the past 30 days, indicating a 76.86% year-over-year increase.
Alibaba Group Holding Limited Price and Consensus
Valuation and Price Performance
On valuation, Oracle trades at a discounted forward 12-month price-to-earnings ratio of 14.18x, while Alibaba commands a premium 14.85x multiple, suggesting the market is pricing in more optimism for Alibaba's AI-driven turnaround relative to Oracle's heavier near-term spending burden.
ORCL vs. BABA P/E Ratio
Image Source: Zacks Investment Research
Price action, however, tells a very different story: Oracle shares have plunged 38.5% year to date, underperforming Alibaba's 21.5% gain over the same period. That divergence has left Oracle trading cheaper despite stronger backlog visibility and raised guidance, while Alibaba's rally has already priced in much of its recent AI momentum, model launches and chip progress, leaving comparatively less room for further re-rating.
ORCL Underperforms BABA Year to Date
Image Source: Zacks Investment Research
Conclusion
Oracle's record RPO backlog, capital-efficient AI contracts, raised profit guidance, widening Google and NVIDIA partnerships, and discounted valuation after a sharp pullback together give it a clear fundamental edge over Alibaba, whose AI and cloud progress is genuine but still weighs on near-term profitability amid an open-ended, escalating capex cycle and intensifying domestic competition. That combination of visibility, cheaper valuation and a funded AI buildout leaves Oracle better positioned to reward patient investors from current levels. Investors may therefore consider buying Oracle stock here, while holding Alibaba positions or waiting for a more attractive entry point before adding fresh exposure. ORCL currently carries a Zacks Rank # 2 (Buy), whereas BABA has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Oracle vs. Alibaba: Which Cloud & AI Giant Should You Buy Right Now?

Key Points
SpaceX's post-IPO performance is similar to other mega-IPOs.
Two potential paths stand out from historical large IPOs.
SpaceX's destiny won't be dictated by history.
Space Exploration Technologies (NASDAQ: SPCX) took off like one of its Falcon 9 rockets in the immediate days following its initial public offering on June 12, 2026. That IPO was one for the record books, ranking as the largest ever.
Since then, though, SpaceX's sizzle has fizzled. Actually, its performance looks almost identical to past mega-IPOs. And one thing usually happens next, if history repeats itself.
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A familiar pattern
I looked at the 10 largest past IPOs. SpaceX's trajectory has followed the paths of several of them. For example, the space stock jumped roughly 19% on its first day of trading -- almost exactly the historical average for mega-IPOs.
SpaceX's subsequent performance perhaps tracks most closely with another highly anticipated IPO. Facebook, now Meta Platforms (NASDAQ: META), listed its shares on the Nasdaq stock exchange on May 18, 2012. The social media stock plunged more than 30% over the next few weeks before rebounding somewhat.
That's what we're seeing unfold with SpaceX. Shares of Elon Musk's space technology company fell more than 30% after rising immediately following the IPO. The stock has bounced back a little since bottoming out, though.
Two potential paths
What usually happens with mega-IPO stocks after their initial declines? Historically, there have been two paths.
Facebook/Meta Platforms represents the more attractive of the two paths. Although the stock performed dismally for most of 2012, it eventually roared back. By the end of 2013, Facebook's shares were up more than 40%.
Patient investors who held onto the stock were richly rewarded. An initial investment of $10,000 in Facebook when it first began trading would be worth more than $169,000 today.
Alibaba Group Holding (NYSE: BABA) is an especially disastrous example of the other path for mega-IPO stocks. When Alibaba listed its shares on the New York Stock Exchange on Sept. 19, 2014, it ranked as the largest IPO in U.S. history at the time. Although the Chinese tech stock struggled for a while, it had more than tripled by late 2020.
But then the bottom fell out for Alibaba. Multiple issues derailed the company's growth. The stock is now down more than 60% below its peak. Since its IPO, Alibaba has delivered a positive return of around 27%, less than one-tenth the S&P 500's return during the period.
What's next for SpaceX?
If SpaceX continues to track with previous mega-IPOs, it's likely to experience significant near-term volatility. The company's staggered post-IPO lock-up release schedule could complicate matters, with the prospects of insider selling over the next few months potentially creating downward pressure on SpaceX's share price.
Eight of the 10 largest U.S. IPOs have underperformed the S&P 500 (SNPINDEX: ^GSPC) since the companies went public. SpaceX could become the ninth member of this group, but this fate isn't guaranteed.
The company's Starlink satellite internet services unit has a real opportunity to disrupt the wireless services market dominated by telecom giants such as AT&T (NYSE: T), T-Mobile (NASDAQ: TMUS), and Verizon Communications (NYSE: VZ)
SpaceX's Starmind initiative, though, could be the game changer that makes it more like Meta than Alibaba. Starmind's goal is to launch up to 1 million satellites that process artificial intelligence (AI) workloads. The results from these AI processes would then be beamed back to Earth stations.
While that might sound like something from a science fiction novel, Musk and the SpaceX team believe they can resolve the technological challenges and make it happen. If so, the competitive advantages Starmind would offer -- including low energy costs from solar power -- could make SpaceX the most powerful player in the AI data center market.
The bottom line is that no one knows for sure which path SpaceX will take over the next few years. The company's destiny won't be dictated by past IPOs, even if its current trajectory looks eerily similar to some of them.
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Keith Speights has positions in Meta Platforms and Verizon Communications. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool recommends Alibaba Group, Nasdaq, T-Mobile US, and Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SpaceX's Performance Looks Almost Identical to Past Mega-IPOs -- Here's What Usually Happens Next

Key Points
Apple's AI strategy has far less risk than those of its rivals.
The tech leader has found smart ways to benefit from AI without incurring massive costs.
Shares of Apple (NASDAQ: AAPL) climbed to near record highs on Friday, as investors applauded the iPhone maker's relatively modest artificial intelligence (AI) investments.
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Apple's conservative strategy is looking smarter by the minute
Hyperscalers and other tech giants are spending staggering sums to build out their artificial intelligence (AI) infrastructure networks. For just two examples, Amazon and Alphabet are planning to spend a stunning $200 billion each in 2026 alone.
Investors are beginning to question whether these massive capital expenditures will produce the type of returns they've grown accustomed to. Moreover, fears are mounting that the AI boom could be expanding into a bubble. Bubbles eventually burst -- and often lead to a crash.
You don't always need to spend money to make money
Rather than spending hundreds of billions of dollars in a futile attempt to keep pace with the latest AI advances, Apple is partnering with other AI leaders to bring the products of their massive spending to its customers.
Apple has partnered with Alphabet, Nvidia, and OpenAI to bolster the AI features on its iPhones and other devices. It's also working with Chinese internet giants Alibaba and Baidu to offer AI-powered services in China.
This collaborative approach is prudent and cost-efficient. In turn, savvy investors are beginning to appreciate Apple's AI strategy more each passing day.
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Joe Tenebruso has positions in Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Baidu, and Nvidia. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Apple Stock Is Up Today

Alibaba’s BABA international commerce business is narrowing losses, positioning the segment as a stronger long-term growth driver. Alibaba International Digital Commerce Group (AIDC) — which includes AliExpress, Alibaba.com, Lazada and Trendyol — significantly reduced its adjusted EBITA loss in fiscal 2026 as management improved logistics efficiency, optimized operations and enhanced unit economics, bringing the business closer to break-even.
The Brand+ initiative is attracting higher-quality brands and consumers, supporting stronger monetization, while AI-powered tools such as Accio and Accio Work are helping merchants automate sourcing, product listings and business operations, improving productivity and customer engagement. Alibaba.com’s global B2B marketplace, spanning buyers in more than 190 countries and generating revenues from memberships, value-added services, logistics and digital marketing, provides a diversified foundation for future international expansion. Alibaba has also continued strengthening its cross-border commerce ecosystem by expanding AI capabilities for merchants and broadening its Trade Assurance program into additional markets, reinforcing its strategy to accelerate profitable international growth.
However, investors should monitor regulatory risks, particularly in Europe, where increased compliance requirements and penalties for marketplace operators could raise operating costs and slow the path to sustained profitability for Alibaba's international commerce business.
According to the Zacks Consensus Estimate, earnings are projected to grow 15.28% in fiscal 2027, indicating that continued improvement in international commerce could become an increasingly important contributor to Alibaba's long-term profitability and sustainable growth.
How Rivals Stack Up Against BABA
Amazon AMZN challenges Alibaba through its vast international marketplace, fulfillment network and Prime ecosystem. Amazon benefits from seller-friendly policies, including lower fees in Europe and Brazil, while faster delivery and logistics strengthen global reach. The company also expands cross-border opportunities through growing international operations. Amazon's scale, fulfillment efficiency and trusted brand remain key competitive advantages.
Global-e Online GLBE competes with Alibaba by enabling brands to sell globally through localized merchant-of-record services. Global-e Online differentiates itself with compliance, duties, taxes, payments and fulfillment capabilities, while Managed Markets and Borderfree expand merchant reach. Global-e Online also benefits from AI-driven automation and growing demand for seamless cross-border commerce, reinforcing its competitive position.
BABA’s Share Price Performance, Valuation & Estimates
BABA shares have declined 33.5% over the past six months compared with the industry’s fall of 4.2%.
BABA’s Six-Month Price Performance
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company's shares currently trade at 14.78 forward earnings, lower than 21.63 for the industry. BABA has a Value Score of C.
BABA’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2027 EPS has declined 6.78% to $6.88 over the past 60 days, and those for fiscal 2028 have decreased 9.06% to $9.53. However, the estimate still reflects robust year-over-year growth of 76.86%.
Image Source: Zacks Investment Research
Alibaba currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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BABA's International Commerce Narrows Losses: Can It Sustain Momentum?

Key Points
Appaloosa Management's top seven holdings are all tech companies, except for Vistra.
Vistra has signed long-term power supply deals with big tech companies like Meta Platforms.
Vistra finished the first quarter with net income of around $1.03 billion, after operating in the negative last year.
Billionaire David Tepper made the bulk of his fortune investing on Wall Street, so it's understandable that people would peek into his hedge fund's holdings to get a look at where he's placing his bets. As of the first quarter (Q1), Tepper's hedge fund, Appaloosa Management, had $5.93 billion in assets under management, with a surprising amount of that coming from a little-known energy company.
Vistra (NYSE: VST) was 5.12% of Appaloosa's portfolio, its seventh-largest holding. The six above it are Amazon, Micron, Alphabet, Uber, Taiwan Semiconductor Manufacturing, and Alibaba, all of which fall into the tech bucket.
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So, why are Tepper and Appaloosa so high on Vistra? Let's take a look.
What does Vistra do?
Vistra is an energy company that makes money in two main ways. The first is through retail, supplying power to around 5 million residential, commercial, and industrial customers.
The second is through power generation, which involves producing large amounts of electricity (about 44,000 megawatts) and selling it to major U.S. power grids. Its fleet is powered by natural gas, nuclear, coal, solar, and battery energy storage.
Tepper and Appaloosa likely increased their stake in Vistra because of its power generation business, and it (surprisingly) comes back to artificial intelligence (AI).
A different way to invest in AI
Except for Uber, the companies making up more of Appaloosa's portfolio than Vistra are all AI stocks, ranging from cloud to hardware to manufacturing. Vistra is not an AI stock, but it's positioned well to benefit from the ongoing AI boom.
Data centers house the infrastructure needed to run AI. However, it takes tons of power to keep them running 24/7, as they need to handle the workload. Many people would argue it takes too much power, but in Vistra's case, it has worked in its favor.
As AI hyperscalers (companies that own the infrastructure) collectively spend hundreds of billions building out data centers, they're locking in with companies like Vistra to ensure they have the power to supply them. Just earlier this year, Vistra and Meta Platforms announced a 20-year power purchase agreement. It's hard not to think that helped Tepper's decision to double down on the stock.
Is now the time to invest in Vistra?
Over the past 12 months, Vistra's stock has been down around 12% (as of July 22), so it hasn't experienced the AI-fueled growth that many other AI-adjacent stocks have. However, this could be Tepper getting ahead of the curve.
Last year, in Q1, Vistra operated with a $268 million loss. That same quarter this year, its net income was $1.03 billion. It's not the $1.84 billion it generated in Q3 2024, but it shows promise that it can head back in that direction.
Vistra hasn't necessarily reaped all the benefits from the AI windfall just yet, but I like the position it's currently in. However, the stock's volatility isn't for everyone. I wouldn't touch it if you're risk-averse.
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Before you buy stock in Vistra, consider this:
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Stefon Walters has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Micron Technology, Taiwan Semiconductor Manufacturing, Uber Technologies, and Vistra. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

David Tepper Has 5% of His Portfolio in This Little-Known Energy Stock. Here's Why.

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Avantis Emerging Markets Equity ETF (Symbol: AVEM) where we have detected an approximate $275.1 million dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 276,900,000 to 279,900,000). Among the largest underlying components of AVEM, in trading today Alibaba Group Holding Ltd (Symbol: BABA) is off about 1.5%, ASE Technology Holding Co Ltd (Symbol: ASX) is up about 0.8%, and NetEase, Inc (Symbol: NTES) is lower by about 5.5%. For a complete list of holdings, visit the AVEM Holdings page » The chart below shows the one year price performance of AVEM, versus its 200 day moving average:
Looking at the chart above, AVEM's low point in its 52 week range is $68.27 per share, with $100.83 as the 52 week high point — that compares with a last trade of $91.66. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further AVEM Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AVEM, BABA, ASX, NTES: Large Inflows Detected at ETF

The NASDAQ 100 Pre-Market Indicator is down -571.34 to 28,454.43. The total Pre-Market volume is currently 143,085,824 shares traded.
The following are the most active stocks for the pre-market session:
Direxion Daily MU Bull 2X ETF (MUU) is -1.6997 at $25.81, with 9,416,216 shares traded. This represents a 2,985.51% increase from its 52 Week Low.
SK hynix Inc. (SKHY) is -0.41 at $151.90, with 6,723,843 shares traded. As reported by Zacks, the current mean recommendation for SKHY is in the "strong buy range".
Nokia Corporation (NOK) is -0.31 at $10.07, with 6,523,162 shares traded.NOK is scheduled to provide an earnings report on 7/23/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is 0.07 per share, which represents a 5 percent increase over the EPS one Year Ago
ProShares UltraPro QQQ (TQQQ) is -3.9 at $66.84, with 6,344,343 shares traded. This represents a 79.1% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is +2.27 at $43.16, with 5,881,725 shares traded. This represents a 20.56% increase from its 52 Week Low.
GraniteShares 2x Short SK Hynix Daily ETF (SKDD) is +0.151 at $16.95, with 4,988,083 shares traded. This represents a 51.08% increase from its 52 Week Low.
Netflix, Inc. (NFLX) is -8.36 at $65.99, with 4,527,280 shares traded. As reported by Zacks, the current mean recommendation for NFLX is in the "buy range".
United Microelectronics Corporation (UMC) is -1.58 at $20.71, with 3,507,757 shares traded. UMC's current last sale is 223.29% of the target price of $9.275.
NIO Inc. (NIO) is -0.16 at $4.83, with 1,430,767 shares traded. NIO's current last sale is 69% of the target price of $7.
Oracle Corporation (ORCL) is -3.09 at $121.12, with 1,158,999 shares traded., following a 52-week high recorded in prior regular session.
Alibaba Group Holding Limited (BABA) is -2.44 at $115.05, with 992,495 shares traded. As reported by Zacks, the current mean recommendation for BABA is in the "buy range".
NuScale Power Corporation (SMR) is -0.1815 at $7.46, with 910,031 shares traded., following a 52-week high recorded in prior regular session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Most Active for Jul 17, 2026 : MUU, SKHY, NOK, TQQQ, SQQQ, SKDD, NFLX, UMC, NIO, ORCL, BABA, SMR

Alibaba Group BABA stock has clawed back some ground in July, but the year-to-date (YTD) scoreboard still tells an unflattering story, and investors weighing whether to hold on or lock in relief are staring at a business whose near-term fundamentals remain considerably shakier and more uncertain than the recent bounce off multi-month lows would otherwise suggest.
BABA shares have plunged 19.7% YTD, underperforming the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector's growth of 3.5% and 2.3%, respectively.
BABA Underperforms Industry, Sector YTD
Image Source: Zacks Investment Research
Recent Headwinds Add to the Uncertainty
Alibaba's recent news flow has been a mixed bag that leaves little room for comfort. In July 2026, the company detailed a $600 million non-prosecution settlement with the U.S. Department of Justice tied to historical sales of illegal pharmaceutical products on its marketplaces, resolving a long-running legal overhang. A U.S. district court granted Alibaba a temporary stay from a Pentagon rule, allowing continued lobbying, even as the Department of Defense's blacklist labeling it a Chinese military-linked company remains in force and could restrict procurement-related business. Shares got a lift after Chinese regulators approved the integration of Alibaba's Qwen AI model into Apple Intelligence features in China, a rare bright spot. However, the company drew fresh scrutiny in June and July after Anthropic alleged Alibaba-linked accounts used fake profiles to extract capabilities from its Claude models, prompting Alibaba to curb internal use of rival AI tools. Separately, several law firms launched shareholder investigations.
Q4 Guidance Signals More Pain Ahead
Alibaba's fourth-quarter fiscal 2026 results, reported in May, underscored the same tension between growth and profitability. Revenues rose just 3% year over year to RMB243.4 billion, missing estimates, though growth reached 11% on a like-for-like basis excluding divested assets. Adjusted EBITA collapsed sharply by 84%, and the company posted its first operating loss since early 2021, as heavy AI and quick-commerce spending overwhelmed core profitability. Cloud Intelligence Group revenues accelerated to roughly 38-40% growth, with AI-related products now representing about 30% of external cloud revenues. Management guided that AI product revenues are expected to cross 50% of cloud revenues within about a year, and cautioned that capital expenditure will likely overshoot its original RMB380 billion target given surging infrastructure needs. Free cash flow turned negative during the quarter. While management framed the spending as necessary for long-term AI opportunity, the guidance points to continued margin pressure and cash burn ahead.
The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $6.89 per share, down 5.5% over the past 30 days, indicating a 77.12% year-over-year increase.
Alibaba Group Holding Limited Price and Consensus
Valuation and Competitive Landscape
From a valuation standpoint, BABA stock is currently trading at a trailing 12-month Price/Earnings ratio of 37.24X compared with the sector’s 29.15X. BABA has a Value Score of C, reflecting a premium multiple relative to peers.
BABA P/E TTM Ratio Depicts Stretched Valuation
Image Source: Zacks Investment Research
Beyond the operational overhangs, Alibaba's cloud ambitions face intensifying competition. Alibaba Cloud continues to expand across Asia, but it remains far smaller globally than Microsoft MSFT, Alphabet GOOGL-owned Google, and Amazon AMZN, each of which is deploying tens of billions of dollars in AI infrastructure annually. Microsoft's Azure and Google's Cloud platform both continue posting robust growth alongside deep enterprise AI partnerships, while Amazon's AWS remains the largest hyperscaler by revenues, giving all three greater scale to absorb heavy capital spending than Alibaba has. Microsoft and Google enjoy diversified, cash-generative core businesses that cushion their AI investment cycles, whereas Alibaba's e-commerce base is under domestic pressure from Chinese rivals. Amazon's logistics and retail scale complicate Alibaba's international commerce ambitions. Given persistent margin erosion, negative free cash flow and geopolitical restrictions limiting access to advanced chips, Alibaba's competitive position against these three cloud leaders looks stretched, reinforcing caution around the stock in the near term.
The Bottom Line
Taken together, the fiscal fourth-quarter miss, the operating loss and management's acknowledgment that capital spending will overshoot guidance suggest profitability pressure is unlikely to ease soon. Add to that the DOJ settlement costs, the ongoing Pentagon blacklist risk, fresh shareholder litigation and intensifying competitive spending from far larger, better-capitalized cloud rivals and the near-term risk-reward for BABA looks unfavorable.
The stock's 19.7% year-to-date decline reflects concerns rather than sentiment, and with free cash flow negative and margins compressing even as AI investment accelerates, near-term catalysts for a sustained rebound appear limited. Long-term believers in Alibaba's AI and cloud ambitions may choose to stay invested, but for investors focused on near-term performance, the combination of weak profitability, geopolitical overhang and heavy ongoing capital commitments makes booking profits or simply staying on the sidelines the more prudent near-term course rather than holding through uncertainty. Alibaba currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Alibaba Plunges 19.7% YTD: Hold the Stock or Book Profits Now?

Key Points
Innovative new tech could bring the power of advanced AI models to the iPhone.
Partnerships with Chinese cloud leaders will help Apple bring AI services to its largest international market.
Shares of Apple (NASDAQ: AAPL) jumped to a record high on Wednesday, following some positive developments for the tech titan.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
More AI models could be coming to the iPhone
On Tuesday, CNBC reported that Apple was evaluating innovative technology that could shrink large artificial intelligence (AI) models to run directly on an iPhone.
PrismML, a tiny Silicon Valley start-up, licenses the technology from the California Institute of Technology. PrismML CEO Babak Hassibi said Apple is testing the tech's performance on its devices.
If those tests prove successful, Apple could bring the power of advanced AI models to iPhone users. It could also help Apple reduce its cloud computing costs if AI applications can run directly on its devices.
And on Wednesday, news broke that the Cyberspace Administration of China would allow Apple to provide AI services in the populous country.
Chinese e-commerce and cloud giant Alibaba will integrate its Qwen AI model into Apple Intelligence. Baidu, China's internet search leader, will also work with Apple to develop AI features for its devices.
Apple's AI strategy is emerging
Apple has largely stayed out of the AI model race, much to the benefit of its shareholders.
Rather than spending tens and even hundreds of billions of dollars to compete with model makers like OpenAI and Anthropic or hyperscalers like Google and Meta Platforms, Apple has sought to partner with AI leaders to bring their innovations to its users.
It's a smart, cost-effective strategy. And these recent developments are beginning to show that Apple can still benefit from AI without incurring massive costs.
Should you buy stock in Apple right now?
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Baidu, and Meta Platforms. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	25.22 19.50
Price/Sales	2.32 0.69
P/B	1.37 1.82
P/FCF	20.74 14.60

Indicator	TTM Median
ROE	9.82 15.10
ROA	5.75 4.87
ROI	6.95 8.60
Net Worth	230.77 0.87
Quick Ratio	0.00 0.86
Current Ratio	1.46 1.40

Indicator	TTM Median
Net Profit Margin	10.35 5.74
Operating Margin	5.83 8.17
Gross Margin	39.81 39.42
Return on tangible equity	15.31 21.15

Indicator	TTM Median
EPS	0.00 0.49
EPS Forecast	2.40 0.46
Revenue	38.29B 192.50M
Gross Profit	16.49B —
EBITDA	129.00M —

Alibaba Group Holding Limited

Recent quarterly and TTM performance

Valuation

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Revenue