Alibaba Qwen 2.5 Max: Analysis Sentiment and Risk

Bittime - Alibaba recently attracted global attention by launching its latest AI model, Qwen 2.5 Max, which is believed to strengthen its position in the artificial intelligence (AI) and cloud computing industry. The arrival of this model not only increases competition with AI models from US companies, but also signals a major change in Alibaba's business strategy. This article will discuss investor sentiment on Alibaba following the launch of Qwen 2.5 Max, as well as risks to be aware of.

What is Qwen 2.5 Max?

Model Qwen 2.5 Max is the latest product from Alibaba that uses architecture Mixture of Experts (MoE), which allows this system to activate certain submodels according to the assigned tasks. By using 20 trillion tokens for training and RLHF (Reinforcement Learning from Human Feedback), Qwen 2.5 Max manages to surpass AI models such as DeepSeek V3 in the benchmark test.

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However, despite its advantages in terms of efficiency and performance, the API price for using the Qwen 2.5 Max is slightly higher compared to competing models such as DeepSeek. This is a challenge for Alibaba in capturing a share of the increasingly growing AI market.

Positive Sentiment Among Investors

After a sharp drop in Alibaba's share price of approx 70% since 2020, investors are starting to see signs of recovery. In the past year, Alibaba shares showed steady upward trend, driven by innovation and the company's shift in focus towards the cloud computing and AI sectors.

Launch Qwen 2.5 Max further strengthens investors' confidence that Alibaba is on the right track to change the direction of its business from stagnant e-commerce to a more developed sector, namely cloud computing And artificial intelligence.

Additionally, Alibaba's options market is showing high buying interest, especially for contracts with period of the next few months, depicts investor optimism about the potential for Alibaba's share price to rise in the near future.

Tight Competition and Challenges

Even though investors' optimism about Alibaba is increasing, the company still has to face fierce competition in the AI ​​sector, especially from companies like Pinduoduo, JD.com, and new players in the AI ​​industry such as SenseTime And Baidu. In addition, Alibaba's e-commerce sector such as Taobao And Tmall also showing signs stagnation, with just 1% YoY growth in the last quarter.

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Instead of relying on an increasingly tight e-commerce business, Alibaba must now focus on development cloud computing And AI, where they have a great opportunity to compete globally. However, the biggest challenge is how to overcome it price and service competition offered by competitors such as JD Logistics, which offers faster delivery with a more integrated logistics system.

Risks to Be Aware of

Just like investing in other technology companies, there are several risk that Alibaba investors should consider. Government regulations More stringent measures against Chinese technology companies could hinder Alibaba's development. Besides that, the emergence of new competitors in the AI ​​sector, which could beat the Qwen 2.5 Max in terms of performance or price, is also a big risk to be aware of.

If a company like SenseTime or Baidu successfully launch more advanced and efficient AI models, this could surprise the market and cause decline in Alibaba stock price.

Conclusion

Looking at the various factors, I recommend Alibaba as a stock with a cautious buy category. Although there are significant risks, especially from intense competition and challenges in the e-commerce sector, Alibaba's steps to focus on AI And cloud computing with launch Qwen 2.5 Max shows that this company is ready to do it business transformation which can lead to long-term growth.

For interested investors, it is important to monitor developments in the AI ​​and cloud computing sectors carefully. With huge growth potential in this sector, Alibaba stock price has the potential to experience significant increases, although risks remain. Therefore, investment decisions must be made with full consideration and awareness of the existing risks.

FAQ

What is Alibaba Qwen 2.5 Max?

Qwen 2.5 Max is the latest AI model from Alibaba which is more efficient in carrying out tasks using architecture Mixture of Experts.

How does Qwen 2.5 Max affect Alibaba shares?

The launch of this model increased positive investor sentiment, pushing Alibaba's share price up after a period of stagnation.

What risks does Alibaba face with this launch?

Key risks include intense competition in the AI ​​and e-commerce sectors, as well as the impact of Chinese government regulations that could affect Alibaba's growth.

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Reference

Seeking Alpha, Alibaba: Will Qwen 2.5 Max Lift The Stock Back To Glory?, accessed February 1, 2025.

Author: MF