JB Global Capital Highlights Alibaba (BABA)’s AI and Cloud Growth at 18x Earnings
JB Global Capital, an investment firm, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. During Q4 2025, JB Global Capital reported an 8.9% decline, largely driven by a sharp drop in Alibaba, its largest holding, while global markets posted modest gains. Despite the quarter’s setback, the fund delivered a strong full-year return of 67.5% and stands at 108.9% since inception, outperforming major benchmarks. The letter explains that 2025 market gains were heavily concentrated in a small group of mega-cap tech companies, which the fund largely avoids due to valuation discipline. However, the managers remain focused on fundamentals and believe this approach will benefit long-term performance as market leadership shifts. Additionally, please check the fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, JB Global Capital highlighted stocks such as Alibaba Group Holding (NYSE:BABA). Alibaba Group Holding (NYSE:BABA) is a Chinese multinational technology company with a strong presence in e-commerce and cloud computing. Alibaba Group Holding's (NYSE:BABA) cloud revenue grew 34% year-over-year, and its AI-related products recorded nine consecutive quarters of triple-digit revenue growth. At the end of Q4 2025, Alibaba Group Holding (NYSE:BABA) traded at roughly $146 per share, with $41 billion in net cash and generating nearly $35 billion in quarterly revenue from its core businesses. The fund reduced its exposure by approximately 10% at $172 per share after an 85% run-up in price. Alibaba Group Holding's (NYSE:BABA) valuation stands at 18x trailing earnings, providing a balance of growth potential through AI and cloud while being protected by established businesses. The one-month return of Alibaba Group Holding Ltd. (NYSE:BABA) was approximately -3.57%, and its shares gained about 86.43% of their value over the last 52 weeks. On January 9, 2026, Alibaba Group Holding Limited (NYSE:BABA) stock closed at approximately $150.96 per share, with a market capitalization of about $358.95 billion.
JB Global Capital stated the following regarding Alibaba Group Holding (NYSE:BABA) in its fourth quarter 2025 investor letter:
"We made the decision to decrease our exposure to Alibaba Group Holding (NYSE:BABA) stock after a nearly 85% run-up in price. We trimmed the position by roughly 10% at $172 per share, a level at which we felt comfortable reallocating profits into other opportunities. Our decision relates more to the changing risk/reward profile than a loss of conviction in business value.
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