ALIBABA : 2026 Shareholder Letter: “Growth is the constant theme at Alibaba”

Research evidence excerpt

ALIBABA : 2026 Shareholder Letter: “Growth is the constant theme at Alibaba”

ieve Alibaba still possesses the early-mover advantage in agentic coding and monetisation. It is even

more challenging for us to predict potential timing of T-Head unit spin-off, Alibaba’s in-house chipmaking business.

However, we are certain that more disclosure regarding T-Head’s product development and deployment will help

investors better understand the investment value of Alibaba’s full-stack capabilities.

Consumer AI monetization will be the next major catalyst

The letter highlighted the progress made by Qwen app in integrating with other apps within Alibaba’s ecosystem since

Nov 2025. We understand that seven months is a very brief period. However, any qualitative evidence on 1) the

progress of agentic commerce including GMV growth, user growth, user retention etc; 2) cross-app monetization; and

3) any tangible synergies between Qwen and the QC initiative will help to further re-rate the valuation.

We understand that investors tend to value smaller AI studios at higher valuation multiples while having more stringent

requirements on the outcomes of Alibaba’s AI initiatives, such as that it has to be earnings accretive even in the short-

term. We do not believe the market narrative and valuation paradigm will remain so inconsistent in the long-run and

suggest investors evaluate AI platforms in a more systematic way as gen-AI is more of a systematic project than a

single IT product.

Investors should not be over optimistic about breakeven timeline of quick commerce (QC)

Since growth is the constant theme Alibaba, we believe Fan Jiang’s leadership over QC initiative and consumption

business has unwavering support from senior management and the board.