Antipodes Global Value Strategy: Alibaba Group Holding Limited (BABA) is Quickly Asserting Itself as a Key AI Beneficiary In China

Antipodes Partners recently published its “Antipodes Global Value Strategy” third-quarter 2025 investor letter, highlighting the key performance stocks, portfolio changes, and the market outlook. A copy of the letter can be downloaded here. In the quarter, global equities rose positively, supported by easing trade tensions, excitement around AI, and expectations of rate cuts by the Federal Reserve. Global equities gained +7.6% in USD and +6.4% in AUD, driven by central bank interest rate reductions, new US trade agreements, and strong corporate earnings. The Antipodes Global Value Strategy outperformed the benchmark during this quarter and showed even greater outperformance for the year to date and the 12 months ending September 30, 2025. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Antipodes Global Value Strategy highlighted stocks such as Alibaba Group Holding Limited (NYSE:BABA). Alibaba Group Holding Limited (NYSE:BABA) provides technology infrastructure and marketing reach. The one-month return of Alibaba Group Holding Limited (NYSE:BABA) was -4.32%, and its shares gained 80.43% of their value over the last 52 weeks. On November 13, 2025, Alibaba Group Holding Limited  (NYSE:BABA) stock closed at $159.84 per share, with a market capitalization of $397.899 billion.

Antipodes Global Value Strategy stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its third quarter 2025 investor letter:

"Alibaba Group Holding Limited (NYSE:BABA) is quickly asserting itself as a key AI beneficiary in China, through the development of its own custom silicon, developments in the already leading LLM, its dominant cloud infrastructure business (growing 25-30% p.a.) as well as further in-house application opportunities via ecommerce advertising and search. We see the cloud business as the core avenue for Alibaba to monetise its investments in AI. The company expects domestic e-commerce revenues (advertising and commission) to grow c. 10% p.a., international e-commerce to grow c. 20%, with losses from both segments narrowing. Whilst 2026 will likely see profits fall due to investment in instant retail, we see earnings subsequently compounding at 20% p.a. with a high-teens forward earnings multiple. The position in Alibaba complements our increased position in Tencent, where position size remains meaningfully larger given a relatively stronger business outlook thanks to its leading gaming business along with AI monetisation opportunities from WeChat search and advertising."

Alibaba Group Holding Limited (NYSE:BABA) is in the 17th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 101 hedge fund portfolios held Alibaba Group Holding Limited (NYSE:BABA) at the end of the second quarter, which was 125 in the previous quarter. In the fiscal first quarter of 2026, Alibaba Group Holding Limited (NYSE:BABA) reported revenue of RMB 247.7 billion. While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Alibaba Group Holding Limited (NYSE:BABA) and shared the list of best blue-chip stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.