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Why Did Alibaba (BABA) Drop 3.08% Despite 56% Yearly Surge?

Mover TrackerThursday, Apr 3, 2025 7:49 am ET

1min read

On April 3, 2025, baba experienced a 3.08% drop in pre-market trading.

Joule Financial's Quint Tatro highlighted alibaba (BABA) as an excellent choice for investors seeking portfolio hedging against tariff volatility. Tatro, the founder and CEO of the investment firm, shared his insights on the Chinese e-commerce giant and other market hot stocks during an appearance on CNBC's Power Lunch.

Tatro emphasized that despite Alibaba's strong performance this year, with a stock price surge of over 56%, the company remains a compelling buy due to its "anti-tariff" characteristics. He noted that Alibaba's revenue is predominantly derived from the Chinese domestic market, with less than 5% coming from the United States, making it largely immune to tariff policies.

Additionally, Tatro pointed out that Alibaba's fundamentals are "remarkable," with the company holding $67 billion in cash and planning to invest over $50 billion in artificial intelligence over the next three years. This strategic investment is expected to further bolster Alibaba's competitive edge and drive future growth.

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Corpulos

04/03

$BABA to 120

greyenlightenment

$BABA $NVVE could be the top stock today. Tariffs affect, grid tech thrives, and this underdog keeps rising. Don't blink—momentum is real. BUY TIME. U.S. energy lead starts here.

Scary-Compote-3253

@greyenlightenment What’s your take on NVVE?

RhinoInsight

$BABA folks concerned about China, BABA, PDD. More worried about Americans who'll end up paying more and facing more trouble…🤷‍♂️

NoAd7400

$BABA's cash reserve is hefty. $67bn can fuel growth, acquisitions, or ride out economic storms. Solid position for hedging.

Ecstatic_Book4786

Tatro knows his stuff. Alibaba's anti-tariff shield is solid. Less than 5% US revenue? That's smart diversification.

Sotarif

@Ecstatic_Book4786 Tatro's on point, but Alibaba's AI bet is risky. Huge potential, but also huge costs. They need to execute well.

SojournerHope22

@Ecstatic_Book4786 True, Alibaba's tariff shield is strong. Smart move focusing on the domestic market. Less reliance on US revenue is clutch.

Ben280301

E-commerce in China is a powerhouse. AliBABA's dominance is a given. Betting against them might be risky right now.

Plane-Salamander2580

Less than 5% US revenue? That's sweet insulation from tariff drama. Solid hedge for my portfolio.

BobbyFuckkingAxelrod

@Plane-Salamander2580 How long you planning to hold BABA? Thinking of going long myself, curious about others' strategies.

MacaroniWithDaCheese

AliBABA's AI play is 🔥 long-term bullish.

@MacaroniWithDaCheese AI's def bullish.

Accomplished-Back640

56% surge this year? That's some serious alpha. But hey, still room to grow with their AI push. 🚀

iamsam22222

@Accomplished-Back640 Totally agree, AI's gonna boost it.

No-Sandwich-5467

@Accomplished-Back640 Think BABA can hit 70% this year?

Free-Initiative7508

E-commerce growth in China is unstoppable.

DJJamesBenjamin

@Free-Initiative7508 Think e-commerce in China will slow down?

AliBABA's AI play is 🔥. $50bn investment? They're not messing around. Future-proofing like a pro.

SeriousTsuki

Holding $BABA for diversification, not selling.

Inevitable-Candy-628

Strong fundamentals, cash hoard, AI play. Why not load up while it's discounted? Risky, but potential is there.

EX-FFguy

Anti-tariff benefits make it a safe bet.

Ok-Razzmatazz-2645

Joule Financial's call on AliBABA is intriguing. With AI investments and domestic focus, it's like they're playing chess while others play checkers.