BlackBird Financial LP Acquires Stake in Alibaba, Emphasizing Exceptional Valuation and Core Business Strength

TOMS RIVER, NJ / ACCESS Newswire / August 20, 2025 / BlackBird Financial LP, led by Judah Spinner, CFA, today announced its strategic investment in Alibaba Group Holding Limited (BABA). BlackBird underscores that Alibaba's core businesses are available at what it sees as a fraction of their intrinsic value once net cash and non-core assets are accounted for.

"In our view, Alibaba is extraordinarily cheap," said Judah Spinner, Founder and Chief Investment Officer of BlackBird Financial LP. "After deducting Alibaba's nearly $70 billion in net cash, its substantial Ant Group stake, and other investments in Lazada and Trendyol, the market is effectively pricing its core Taobao and Tmall platforms at well under $100 billion. For the world's largest retail ecosystems, that's an extraordinary bargain."

Competitive and Market Leadership

Alibaba remains the largest e-commerce company in the world by gross merchandise value (GMV). In fiscal year 2025, Alibaba's GMV exceeded $1.3 trillion, outpacing Amazon and any other global competitor. Its Taobao and Tmall platforms dominate the Chinese market, while AliExpress, Lazada, and Trendyol drive international growth. Combined, these platforms form an unrivaled retail network.

Alibaba's competitive moat is reinforced by its logistics network, Cainiao, which enables fast, cost-efficient delivery across vast geographies, including regions where logistics infrastructure is limited. Its scale, vendor relationships, and integrated payments ecosystem-anchored by its stake in Ant Group-create a formidable barrier to entry for competitors.

Financial Performance

In fiscal year 2025, Alibaba reported revenue of approximately $137.3 billion (996.35 billion yuan), a 6% year-over-year increase. Net income surged to $17.8 billion (129.47 billion yuan), up 62% from the prior year. The company maintains a robust net cash position of nearly $70 billion, providing strategic flexibility for investment, acquisitions, and shareholder returns. AliCloud, the company's cloud computing division, posted revenue growth of 18% year-over year, driven by rapid adoption of AI-related products and services.

AliCloud's market leadership in Asia positions it to compete head-to-head with global hyperscalers like Amazon Web Services and Microsoft Azure, while focusing on specialized regional and sector-specific solutions. Management has announced plans to invest $53 billion over the next three years into AI and cloud infrastructure, further cementing its technological advantage.

Strategic and Operational Strengths

Beyond its e-commerce and cloud platforms, Alibaba controls or holds equity stakes in multiple valuable assets. Its one-third ownership in Ant Group, China's leading fintech company,

represents substantial embedded value. Additional holdings in logistics, media, and international ventures add layers of diversification and growth optionality.

Alibaba's integration of AI throughout its ecosystem-from personalized recommendations in e commerce to demand forecasting in logistics-provides measurable operational efficiencies and enhances the customer experience. Its commitment to innovation extends to research in natural language processing, computer vision, and generative AI, placing it among the most technologically advanced companies in the world.

BlackBird Financial's Investment Rationale

BlackBird Financial's investment thesis is clear: Alibaba's market cap of less than $300 billion significantly understates the worth of its core operations. After accounting for net cash, Ant Group, and other non-core assets, the market is effectively valuing the crown jewels-Taobao and Tmall-at under $100 billion. For the largest retail platforms on the planet, this represents a remarkable discount.

"We love that Alibaba's management has been proactive in creating shareholder value," Spinner added. "Over the last four years, they've used tens of billions of dollars to repurchase shares, reducing the ADR share count from 2.7 billion to about 2.3 billion. This buyback discipline signals strong confidence in the company's future and aligns perfectly with our investment philosophy."

"Many investors focus only on the risks of investing in China," Spinner said. "We acknowledge those risks, but we also see an economy growing faster than the United States and set to become the largest in the world. Alibaba sits at the center of that growth, with the assets, leadership, and vision to benefit for decades. In our view, the upside here far outweighs the downside."

About BlackBird Financial LP

BlackBird Financial LP, founded by Judah Spinner, is a value-oriented investment firm that adheres to the Graham-and-Dodd school of investing. They focus on identifying structurally advantaged businesses and purchasing them at prices well below their intrinsic value.

In the first half of 2025, BlackBird delivered a net return of 34.4%, significantly outpacing the S&P 500's 6.1% return. This performance underscores their commitment to disciplined value investing and their ability to find opportunity where others overlook it.

To learn more visit: https://blackbirdfinancial.com/

Media Contact:

Investor Relations
Judah Spinner
BlackBird Financial LP
info@blackbirdfinancial.com

SOURCE: Judah Spinner