Alibaba Plans Spin-Off of T-Head Unit Amid AI Chip Valuations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy BABA?
Source: Benzinga
- Spin-Off Plan: Alibaba is planning to spin off its T-Head unit for a separate listing, aiming to capitalize on the high market valuations of AI chip makers, which could generate additional capital inflow and enhance overall market competitiveness.
- Valuation Analysis: While listed Chinese AI chip companies trade at triple-digit P/S ratios, Nvidia, which is profitable, has a P/S ratio of only 24, highlighting a stark contrast between the enthusiasm for AI in China and the rationality seen in Western markets.
- Luxury Meets State Control: LVMH is handing over its Greater China duty-free operations to a state-owned enterprise, reflecting strategic adjustments in the luxury sector amid declining financials, which may impact future market performance and brand positioning.
- Investor Caution: In the Chinese market, AI is viewed as a
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Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 158.730
Low
172.00
Averages
203.66
High
230.00
Current: 158.730
Low
172.00
Averages
203.66
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through nine segments. The China Commerce Retail segment is engaged in the China commerce retail business. The China Commerce Wholesale segment is mainly engaged in the operation of 1688.com. The Cloud Intelligence segment provides cloud services. The International Commerce Retail segment provides customer management services, sales of goods and logistics services. The International Commerce Wholesale segment is mainly engaged in the operation of Alibaba.com. The Cainiao Represents Logistics Services segment provides fulfilment services. The Local Services segment’s revenue includes platform commissions, logistics services revenue. The Digital Media and Entertainment segment engages in the operation of Youku and Alibaba. The All Others segment is mainly engaged in the Sun Art, Freshippo and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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