Alibaba shares got a boost last week from news founder Jack Ma is pleased with the company’s turnaround so far. That’s after co-founder and current Chair Joe Tsai told CNBC in late February he felt a lot more “confident” about Alibaba’s ability to still be a top e-commerce player. Ma stepped down as chairman in 2019 . Wall Street analysts expect business will grow, but last week several trimmed their price targets on the stock. Their shared concern is how much Alibaba is spending in the near term for future growth. JPMorgan lowered its earnings forecasts based on “Alibaba’s increasing commitment to investments in core operations: domestic/international ecommerce and cloud,” China Internet Analyst Alex Yao and a team said in a report on April 9. They cut their price target to $100 a share, down from $105 previously, while maintaining an overweight rating. The new price target is still about 33% above where Alibaba’s U.S.-listed shares closed Thursday. The stock has tumbled over a rocky period of about 12 months in which the company shook up its management with a restructuring into six units aimed at spin-offs — “to unlock shareholder value.” One by one, the company has cancelled plans for the IPO of its cloud business, and then its logistics arm Cainiao . “The first thing we did was to acknowledge mistakes,” Tsai told Norges Bank Investment Management’s CEO Nicolai Tangen in an interview, according to a video published on April 3. The firm says it owns 2% of Alibaba. “We’ve acknowledged in the past we might have not focused on our [shopping app] user experience,” Tsai said. “The second thing is to reorganize our personnel, change the organizational structure that fits the strategy.” Eddie Wu became CEO of Alibaba in September, and is also acting head of the cloud business. He succeeded Trudy Dai as head of the Taobao and Tmall e-commerce business in December. Daniel Zhang, the former CEO of the company, abruptly left instead of staying on to lead cloud as originally planned. “Near term, BABA’s financial metrics should remain weak over the next few quarters, given its sustained user investment in Taobao Tmall and [Alibaba International Digital Commerce] investment,” UBS analyst Kenneth Fong and a team said in a report on April 9. “More meaningful upside is likely to be in 2H if macro recovery builds momentum and with more concrete financial results demonstrated from the new business strategy,” UBS said. They cut their price target by $1 to $105 a share and maintained their buy rating. Competition remains fierce across Alibaba’s major business lines. PDD Holdings’ Pinduoduo app and ByteDance’s Douyin, the local version of TikTok, have emerged as two major competitors to Alibaba in e-commerce. The company had spearheaded the industry’s rapid growth in China with its Taobao and Tmall platforms. In the relatively new realm of generative artificial intelligence, ByteDance Doubao chatbot is more popular than Alibaba’s, according to Nomura, citing Questmobile data. Doubao had around 3.7 million users as of the end of March, more than twice that of Alibaba’s Tongyi Qianwen AI chatbot, the data showed. Baidu’s Ernie bot was in second place, with around 2.5 million daily active users. By average daily time spent, Doubao remains first at 8.4 minutes, but Alibaba’s Tongyi Qianwen is second at 7.7 minutes as of the end of March, according to the data. Alibaba is also integrating AI tools and models with its e-commerce and cloud businesses. However, in Tsai’s interview with Norges Bank Investment Management, the Alibaba executive said he estimated that China was about two years behind the U.S. in terms of AI development. AI monetization also got little to no mention in six analyst reports published last week on Alibaba. “We maintain our conservative view towards BABA as business transformation is likely to take time,” Morgan Stanley equity analyst Gary Yu and a team said in a note on April 10. They have a price target of $85, and, in contrast to the many buy ratings, rate the stock equal weight. — CNBC’s Michael Bloom and Arjun Kharpal contributed to this report.
EMBARGOED TO 1AM SG MON JAN 6 / 9AM PST SUN JAN 5 2025
Beijing-based robot vacuum maker Roborock revealed a new model in January 2025 with an artificial intelligence-powered folding arm for removing obstacles.
CNBC | Evelyn Cheng
BEIJING — Chinese robot vacuum cleaner company Roborock revealed a new model on Monday that comes with a folding arm for removing socks and other obstacles — a feature powered by artificial intelligence.
It’s the latest step toward what Roborock President Quan Gang expects will be the inevitable: that robot vacuum cleaners become as essential as washing machines.
That’s something that could happen in as soon as three years, especially with the emergence of AI, Quan told CNBC in a late November interview. “If the era of AI flourishing has really arrived, I’m confident that robot vacuum cleaners will be the first category to apply AI,” he said in Mandarin, translated by CNBC.
Using AI that the company developed, the Roborock Saros Z70 can detect and remove obstructions such as socks, small towels, tissues and sandals weighing less than 300 grams (10.58 ounces), according to the company.
The Saros Z70 is set for release in major global markets in the first half of the year, but Roborock has yet to announce pricing. The product reveal comes ahead of the Consumer Electronics Show that kicks off Tuesday in Las Vegas.
Ever since Massachusetts-based iRobot launched its Roomba floor vacuuming robot in 2002, the circular machines have evolved to include mopping and the ability to automatically return to the charging base. Many companies, including several based in China, now sell robot vacuum cleaners.
Beijing-based Roborock started selling to the U.S. in 2018, Quan said, noting that sales in the country didn’t start to take off until 2023. Roborock also sells its robot vacuums in countries such as Germany, China and South Korea, and makes sure to adhere to local data privacy rules, Quan said.
But robot vacuum penetration rates remain low — just over 10% in developed countries and single digits in developing countries, Quan said. He said that’s both a challenge and a potential for growth, which he expects can get a boost from the integration of artificial intelligence.
The Verge and Wired late last year both named different Roborock models the best robot vacuum available. But the machines aren’t cheap.
“Roborock’s S8 MaxV Ultra ($1,799.99) is an exceptional vacuum cleaner,” The Verge said, noting it is “the best model in the relatively new category of ‘hands-free’ robot vacs, bots that do virtually everything for you: empty their bins, refill their mop tanks, and clean and dry their mop pads.”
“Roborock invented this category with the S7 MaxV Ultra and has been steadily improving it,” The Verge said.
Wired selected Roborock’s Qrevo S, which sells for $800 on Amazon. The review highlighted the Qrevo’s lidar-based navigation and AI feature which enable the machine to distinguish between carpets and tiles for vacuuming or mopping, respectively.
Competition is fierce. CNET said two other companies’ robot vacuums tied for best of 2025, the $900 Ecovacs Deebot T30S Combo — which also has a self-emptying dustbin — and the $359 iRobot Roomba Combo J7 Plus.
Supporting an AI research lab
Shares of Shanghai-listed Roborock closed 2.6% higher Friday after reports emerged of the Saros Z70 and its robotic arm. The stock climbed 10.3% in 2024.
Operating revenue rose by 23.2% for the first three quarters of 2024 to 7 billion yuan ($960 million), with profit of 1.47 billion yuan. Roborock does not break out revenue by region.
Quan said that soon after Roborock’s founding in July 2014, the company sensed the importance of artificial intelligence and set up a dedicated lab in Shanghai and a research institute in Shenzhen. Each location houses around 30 researchers, who only need to focus on technology, in contrast to the product development team that must meet deadlines and consider profit, Quan said.
The next challenge is to expand the number of researchers to around 300 people, Quan said, noting it’s been hard to find qualified talent.
The company spent 9.1% of its operating revenue in the first three quarters of 2024 on research and development, according to CNBC calculations of public figures. That’s up from slightly more than 7% in each of the past three years, the data showed.
Roborock on Monday also announced updates to its washing machines, which can dry clothes in the same unit.
Analysts are pointing to Hong Kong-traded Air China as the leading turnaround candidate among struggling Chinese airlines. China has been far slower than the U.S. to recover from the shock of the 2020-2023 pandemic as the world’s second-largest economy faces its own unique challenges. But among several analysts, ranging from DBS to Citigroup, Beijing-based Air China is the top pick for playing a sustained pickup in Chinese travel at home and abroad. Air China, part of United Airline ‘s Star Alliance group, “is the only Chinese network carrier serving all six continents across the globe, with a particularly strong presence in the profitable China-to-Europe and China-to-North America routes,” DBS analysts Jason Sum and Paul Yong said in a report Thursday. DBS maintained its buy rating, with a price target of 5.60 Hong Kong dollars (72 cents), implying upside of 13% from Air China’s close Friday. 753-HK 5Y line Air China 60% below peak While 2024 saw Hong Kong’s Hang Seng Index rally nearly 18%, Air China saw a more muted, low single-digit increase that left it trading more than 60% below its 2018 all-time high. That gives Air China a “significantly more attractive” valuation, close to its five-year pre-pandemic average, the DBS analysts said. “A stronger-than-expected generation of cash flows will enable the group to deleverage swiftly and repair its battered balance sheet.” The upcoming Lunar New Year, which runs from late January to early February, could provide a boost. Chinese booking site Trip.com noted that interest in international travel over the holiday is way up . Ticket demand for travel from mainland China to parts of Europe is up by about 50% from a year ago, while inbound demand has tripled, with travelers coming both from nearby Japan and the distant U.S., Trip.com said in a forecast Tuesday. Expanded visa-free travel Chinese authorities in recent months have expanded visa-free policies for travelers from several countries, including parts of Europe and, notably, Japan. Citi analysts in early December reiterated their buy rating on Air China, calling it their top travel stock pick among Chinese airlines. They expect the government’s economic policy will support consumption in the coming year. JPMorgan analysts in late November expressed similar optimism, citing Air China’s greater exposure to international travel than rivals, and its roughly 30% stake in Hong Kong-based Cathay Pacific . The analysts upgraded Air China to overweight from neutral — reversing a downgrade made in early October, according to FactSet. The JPM analysts also raised their price target to HKD5.90 based on expectations for significant improvement in earnings over the next two years. The JPM analysts also expect airlines to benefit from lower fuel costs if President-elect Donald Trump carries through on pledges to further reduce energy prices . U.S. airline stocks have outperformed the S & P 500 since early October, the JPMorgan analysts said. Back in early November, Goldman Sachs analysts had already named Air China a “main beneficiary” of increased business travel and resumption in long-haul flights. Goldman expects domestic air passengers grew by 11% in 2024, exceeding 2019 levels, and will expand by another 6% in 2025. The analysts see international traffic recovering to slightly more than 2019 levels in the year ahead. Still, Air China has a long way to go to catch up to its partner United, which closed at a new record in early December and soared 135% in 2024, its largest ever annual gain. Chicago-based United, which operates more international routes than any U.S. airline, has benefited from lower jet fuel costs and a continued recovery in post-pandemic travel demand. — CNBC’s Michael Bloom and Sean Conlon contributed to this report
Check out the companies making headlines in midday trading. Rivian Automotive – Shares popped 19% after the electric vehicle maker’s vehicle production and deliveries for 2024 met the company’s previously announced guidance. This comes after the company had lowered its production target for the full year in October. U.S. Steel – Shares fell 6% following President Joe Biden’s decision to block Japan’s Nippon Steel from acquiring U.S. Steel . Biden said the proposed $14.9 billion takeover would create a risk for the nation’s supply chains. Block – The fintech stock added 5.1% following an upgrade to outperform from market perform at Raymond James. Analyst John Davis believes the stock’s valuation still looks attractive despite a recent run higher, and has renewed conviction in Block’s 2025 acceleration story. Chewy – Shares popped 4% after Wolfe Research upgraded the pet retailer to outperform from peer perform and named it a top internet stock idea. Wolfe listed expectations for earnings upside, an improved macro backdrop and product-related catalysts as reasons for optimism. Alcohol stocks – Shares of alcoholic beverage companies fell after U.S. Surgeon General Dr. Vivek Murthy issued a new advisory warning on the link between alcohol consumption and at least seven types of cancer. Shares of Diageo dropped more than 3%, while Anheuser-Busch Inbev and Molson Coors declined 2.2% and 3.1%, respectively. Meanwhile, Constellation Brands shares fell 1%. Constellation Energy — Shares jumped 4.1%, extending their gains from Thursday when the company announced it received more than $1 billion in contracts to supply the U.S. government with nuclear power over the next decade. Carvana – Shares dropped 5% after short-seller Hindenburg alleged Carvana’s recent turnaround is a “mirage” based on unstable loans and accounting manipulation . The online used-car seller stock surged 284% in 2024. It’s down more than 5% so far this year. Ford , General Motors – Shares of Ford and General Motors increased after both automakers posted their best annual U.S. sales since 2019 . Ford gained 2%, while General Motors rose 0.4%. Vistra – The stock jumped 7.7%, extending the gains seen in the previous session. On Thursday, the stock rose more than 8%, making it the best performer in the S & P 500 in the first trading day of the new year. The gains follow a massive year for the stock, as it soared about 258% in 2024. That made it the second-biggest gainer in the broad market index last year. JetBlue Airways – Shares slid 1% following the Department of Transportation fining the airline $2 million for “chronically delayed flights.” The DOT said that JetBlue operated four routes that were delayed at least 145 times between June 2022 and November 2023. — CNBC’s Alex Harring, Sarah Min, Lisa Kailai Han, Pia Singh and Michelle Fox contributed reporting.