Alibaba’s (BABA) Strategic Investments and Stock Performance Update

Alibaba (BABA, Financial) recently disclosed its investment portfolio through a 13F filing with the U.S. Securities and Exchange Commission, revealing a total market value of approximately $540 million as of the end of the fourth quarter of 2024. The company holds significant shares in Best Group, Weibo, and XPeng Motors.

Alibaba’s investment in Best Group has been substantial since 2015, with a $550 million F-round investment. The company further participated in Best Group’s privatization process, transitioning it into a fully private entity. Alibaba’s involvement in Weibo began in 2013, acquiring an 18% stake, which has since grown to a 30.2% holding, making Alibaba the second-largest shareholder.

In XPeng Motors, Alibaba initially invested during the A+ and cornerstone rounds, increasing its stake to 14.4% before reducing it to 7.5% by the end of last year. Recently, Alibaba converted its XPeng ordinary shares into ADS, reflecting a strategic adjustment rather than a genuine increase in holdings.

Major institutions like Morgan Stanley, the Norwegian Sovereign Fund, and Appaloosa Management have also increased their Alibaba holdings, indicating positive market sentiment towards the company’s future. Appaloosa, for instance, raised its stake to make Alibaba its largest holding.

Alibaba’s recent activities in the AI sector and collaboration with Apple have drawn significant attention. The partnership with Apple aims to localize services in China, boosting both companies’ stock prices by over 3% on the news.