So, in the past six to seven months, why has it been hammered down to half its value again?

Because Alibaba is a company with one foot in the old world and one foot stepping into the new AI world. And for the past six to seven months, the market has been somewhat dissatisfied with both of its feet.

The old world foot (being dragged down): Alibaba's main business is still placed in the basket of "China concept internet consumer stocks". And this basket is now facing pressure from both sides — on one side, the weak overall consumption environment leaves no room for growth; on the other, it's still in a close-quarters battle with Meituan, Pinduoduo, Douyin E-commerce, and JD.com for instant retail (Taobao Flash Sales), burning through a lot of money, with profits and cash flow being dragged down. This old world foot has no room for growth and is still bleeding.

The new AI world foot (not yet fully recognized as an AI stock): Its full-stack capability is real, but there are a few areas that are "not yet fully realized" — although its large model is leading in open source, it hasn't made big money directly from selling the model itself. Open source is more like its "customer acquisition hook," attracting a large number of developers and enterprises to Alibaba Cloud, with money ultimately being collected on the "cloud" (this path actually works, it's just that the market hasn't yet counted it as "AI monetization"). Moreover, its cloud and chip businesses haven't been spun off separately like Kling. Therefore, the market can't simply and cleanly treat it as a pure AI stock, and can only "view it mixed and look at it lower."

With both feet not reassuring, combined with the broader market decline, it was hammered down to 89.

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