It’s safe to say that Cathie Wood has built her illustrious investing career by betting when others hesitate.
The ARK Invest founder has made a name for herself backing EV giant Tesla before it was mainstream, Coinbase during crypto’s darkest days, and high-risk software and genomics plays when the consensus said otherwise.
Additionally, what sets her apart is her daily trade disclosures, which provide the kind of transparency that fuels a self-reinforcing loop, driving liquidity in growth names within hours.
Now, in that same maverick spirit, Wood is doubling down on arguably 2025’s most surprising tech comeback stories in Alibaba.
For perspective, Alibaba’s rebound this year is built on three visible pillars.
The first is its massive 380 billion yuan ($53 billion) commitment through 2028 into AI and cloud infrastructure, positioning it among the top industrial-scale data players.
Additionally, its potent Cloud division continues to expand globally, launching new data centers in Brazil, France, the Netherlands, and Dubai, and spreading its tentacles internationally.
Second, Alibaba demonstrated capital discipline by retiring $11.9 billion in stock in fiscal 2025, reducing its share count by 5%, while simplifying its operational structure to four core groups for faster execution.
And finally, there’s the momentum.
In its June quarter, Cloud revenue surged 26% year over year to 33.4 billion yuan ($4.7 billion), outpacing estimates, with AI-product sales surging triple digits for seven straight quarters. Also, Quick Commerce, now targeting 1 trillion yuan in incremental GMV, adds another massive long-term growth catalyst.
As a result, following years of regulatory overhangs and bearishness, Alibaba’s 2025 playbook looks more like reinvention than recovery.
And with Wood’s backing, smart money will follow.
Image source: Marco Bello/Stringer/Getty Images
Cathie Wood doubles down as Alibaba comeback gathers speed
Cathie Wood seems to be going all in on Alibaba’s powerful rebound.
On October 15, the ARK Invest founder just snapped up another $12.3 million in Alibaba shares across her ARK Innovation, Next Generation Internet, and Fintech Innovation ETFs.
The move adds to what has been a steady buying streak at the Chinese e-commerce giant, which continues to bet big on the cloud and AI.
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In late September 2025, ARK re-entered Alibaba for the first time since 2021, scooping up shares worth nearly $16.3 million across multiple funds.
That same week, she continued the buying spree, purchasing $8.2 million in ARKF and $8.1 million in ARKW, thereby boosting ARK’s China tech exposure.
The buying didn’t stop there, either. In early October, she added another $2.7 million in new BABA stock.
Alibaba shares have been one of this year’s quiet comeback trades.
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The stock is up almost 100% year to date and 43% in the past three months, led by robust consumer spending, cost management, and early signs of traction in its cloud and AI services.
For investors tracking Wood’s moves, the message is that she’s fully committed to her re-entry into one of tech’s biggest comeback stories.
Quick takeaways:
- Cathie Wood scooped up $12.3 million in Alibaba stock across three ARK ETFs on Oct. 15.
- Alibaba stock has rallied close to 100% this year, led by AI and cloud strength.
- Wood’s latest move extends a steady buying streak, which underscores the long-term conviction in BABA stock.
Analysts lift targets as Alibaba’s AI-fueled rebound gathers steam
Wall Street’s conviction in Alibaba is building quickly.
In October, multiple analysts reaffirmed their buy ratings while raising price targets on BABA stock, as the Chinese tech giant’s recovery gathers speed.
Jefferies’ Thomas Chong hailed Alibaba as his “Top Pick for 2026,” as he reiterated a buy rating and a $230 price target.
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He expects cloud sales to jump roughly 30% year-over-year, spearheaded by stronger GPU adoption, more AI training, and healthier demand for custom enterprise models.
On the e-commerce side, Chong believes there is improved synergy between core commerce and Quick Commerce, projecting a 10% expansion in customer management revenue (CMR) due to increased traffic, cross-selling, and higher purchase frequency.
Goldman Sachs’ Ronald Keung echoes that same optimism, bumping his target to $205 from $179, led by superb expansion in Alibaba Cloud and healthier e-commerce earnings. Keung estimates that Alibaba can invest roughly RMB 460 billion ($63 billion) between FY26 and FY28 in AI infrastructure, effectively narrowing the gap with global peers.
Valuation adds a compelling kicker.
Alibaba stock currently trades at just 24 times forward earnings, comfortably below Amazon and Microsoft’s (both trading at a 33× PE ratio).
Similarly, BABA stock trades at a price-to-sales ratio of just 2.7 times compared to Amazon’s 3.4 times and Microsoft’s 13.5 times. Hence, after a stellar 100% rally this year, Alibaba still appears undervalued as it continues to lead China’s tech rebound.
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