Hedge fund billionaire Daniel Loeb shuffled his stake in the broadline retail industry at Third Point LLC in the fourth quarter of FY25.
The investor trimmed its stake in one e-commerce retail giant and bought a stake in another.
Loeb opened a new position in Alibaba Group Holding Ltd (NYSE:BABA), acquiring 825,000 shares in the quarter.
Meanwhile, the fund trimmed its position in Amazon.com Inc (NASDAQ:AMZN) from roughly 2.81 million shares to 2.165 million shares.
Amazon: Recent Key Events
- Amazon posted fourth-quarter revenue of $213.39 billion, topping estimates, while EPS of $1.95 narrowly missed expectations. First quarter sales are projected at $173.5 billion–$178.5 billion (up 11%–15% YoY), roughly in line with forecasts.
- The company plans to raise capex to $200 billion, expand same-day prescription delivery to 4,500 U.S. cities by end-2026, and discontinue its Blue Jay warehouse robot.
- Separately, a Washington court allowed negligence lawsuits to proceed, an AWS UAE data center fire disrupted regional services, and Amazon committed $50 billion to OpenAI under a new multi-year partnership.
Alibaba: Recent Key Events
- Alibaba is facing a leadership shakeup in its artificial intelligence division just as the company accelerates its push into AI models, tools, and infrastructure.
- The company said it will spend 3 billion yuan ($432 million) to promote its Qwen AI app during the Spring Festival, rolling out red-packet giveaways to drive mass-market adoption.
- The company is consolidating its AI efforts under a single brand while expanding its tools and infrastructure to strengthen its position in the fast-growing artificial intelligence market.
- Alibaba's cloud division launched a new AI-powered coding platform that provides affordable access to several leading Chinese AI models.
- Alibaba Cloud Model Studio launched its most advanced Coding Plan yet, expanding API access to four major open-source models, Qwen3.5, GLM-5, MiniMax M2.5, and Kimi K2.5, under a single subscription.
Technical Analysis
Alibaba is trading 13.9% below its 20-day SMA and 16.9% below its 100-day SMA, a setup that typically signals the intermediate trend is still pointed lower. Shares are up 2.82% over the past 12 months, but the stock is currently positioned closer to its 52-week low than its 52-week high.
RSI is at 23.65, which is oversold and often associated with late-stage selling pressure or a potential snapback attempt if buyers step in.
- Key Resistance: $156.50
- Key Support: $117.50
Earnings & Analyst Outlook
The countdown is on: BABA is set to report earnings on March 17, 2026.
- EPS Estimate: $1.73 (Down from $2.93)
- Revenue Estimate: $41.26 Billion (Up from $38.38 Billion)
- Valuation: P/E of 17.8x (Indicates fair valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $188.69. Recent analyst moves include:
- Jefferies: Buy (Lowers Target to $225.00) (Jan. 8)
- Freedom Capital Markets: Downgraded to Hold (Jan. 6)
- Citigroup: Buy (Raises Target to $225.00) (Nov. 26, 2025)
Image created using artificial intelligence via Midjourney.
