Will Alibaba (BABA) be Able to Build a Defensible Moat, Leveraging Multiple Consumption Scenarios?

JB Global Capital, an investment management company, released its third-quarter 2025 investor letter. A copy of the same can be downloaded here. The fund gained 38.4% in the third quarter, reaching a new all-time high at quarter-end. Since the inception on January 3, 2023, the fund has returned 76.4%. It has significantly outperformed its benchmark for the quarter, year-to-date, and—most importantly—since its launch. The strong outperformance was largely a result of its decision to heavily overweight Chinese equities throughout 2023 and 2024. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, JB Global Fund highlighted stocks such as Alibaba Group Holding Limited (NYSE:BABA). Alibaba Group Holding Limited (NYSE:BABA) provides technology infrastructure and marketing reach. The one-month return of Alibaba Group Holding Limited (NYSE:BABA) was 16.52%, and its shares gained 65.74% of their value over the last 52 weeks. On October 8, 2025, Alibaba Group Holding Limited  (NYSE:BABA) stock closed at $181.12 per share, with a market capitalization of $423.304 billion.

JB Global Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its third quarter 2025 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) reported its June quarter earnings, posting $34.6B in revenue and $6B in net income. Management has articulated its forward strategy, and we are pleased to see the company leveraging its significant resource advantage (~$82B in cash) to prioritize aggressive growth. The company has entered a price war in the quick commerce space against rivals and has reportedly gained substantial market share from Meituan, the former market leader, in a relatively short period. Recent trends indicate that Alibaba has captured meaningful food delivery and quick commerce share while increasing spending only modestly compared to Meituan.

Looking ahead, Alibaba Group has two historic opportunities: to build a technology platform centered on AI + Cloud, and to create a comprehensive shopping and daily life services consumption platform. – Eddie Wu, CEO Alibaba Group, Earnings Call…” (Click here to read the full text)

Alibaba (BABA) Soars 8% on US Chip Exports Ease to China

Alibaba Group Holding Limited (NYSE:BABA) is in the 17th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 101 hedge fund portfolios held Alibaba Group Holding Limited (NYSE:BABA) at the end of the second quarter, which was 125 in the previous quarter. In the fiscal first quarter of 2026, Alibaba Group Holding Limited (NYSE:BABA) reported revenue of RMB 247.7 billion. While we acknowledge the risk and potential of Alibaba Group Holding Limited (NYSE:BABA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Alibaba Group Holding Limited (NYSE:BABA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Alibaba Group Holding Limited (NYSE:BABA) and shared the list of safest stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.