Analyst Explains Why He Sold Alibaba Group (BABA) - 'Gave This Trade 90 Days to Work'

CNBC host and analyst Joe Terranova recently said in a program that he sold Alibaba Group Holding Limited (NYSE:BABA).

“Bought it February 12th at 118, sold half at 135 the end of March, sold out of it today completely. Gave this the trade basically 90 days to work. It's right back to where I bought it initially. I know everyone's going to say "Well David Tepper in it." But David Ter's not calling me to tell me how he's managing the position.”

Appaloosa Management of David Tepper owns 9.23 million shares of Alibaba Group Holding Ltd (NYSE:BABA) as of the end of the first quarter.

Loomis Sayles Global Growth Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q1 2025 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) is a leading China e-commerce and consumer-engagement platform provider, operating several businesses across commerce, technology, advertising, digital media and entertainment, logistics, payments, and local services. With over 40% of China’s e-commerce transactions estimated to take place through its Taobao and Tmall marketplaces, we believe Alibaba’s scale and brand would be difficult-to-replicate.

A fund holding since inception, Alibaba reported quarterly financial results that were fundamentally solid and better than consensus expectations for revenue, operating income, and earnings per share. For the quarter, revenue growth of 8% year over year was driven by improved growth in both its commerce customer management revenue at Taobao and Tmall and its cloud business, as well as continued strong growth within the company’s international commerce retail business. Taobao and Tmall represented 49% of total revenue and grew 5% year over year, with customer management revenue growth accelerating to 9%, benefitting from gross merchandise volume (GMV) growth and an improved take rate. T he company’s cloud business represented 11% of revenue and accelerated to 13% revenue growth – and the company highlighted triple-digit growth in AI-related revenue for the 6th consecutive quarter. The company’s international commerce business represented 13% of revenues and grew 32% year over year, benefiting from strong growth of its cross border business. Cainiao Smart Logistics Network represented 10% of revenue and declined by 1% year over year due in part to restructuring within the business. Alibaba’s local services group represented 6% of revenue and grew 12% year over year, benefiting from order growth of Amap and Ele.me and revenue from marketing services. In its digital media and entertainment group (2% of revenue), Alibaba grew its revenue by 8%, benefiting from an increase in Youku’s advertising revenue. In Alibaba’s “all others” segment, which represented 19% of revenue, sales increased by 13% year over year, driven by growth in its retail businesses including Freshippo and Alibaba Health.…” (Click here to read the full text)

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