Alibaba, Kuaishou, and Baidu earnings reports will be released.

1️⃣ I am most bullish on Alibaba. Its advantage lies in the closed loop of 'Model + Alibaba Cloud + E-commerce Scenarios', allowing it to charge enterprises for computing power and model services while using AI to enhance transaction efficiency. Baidu has deep technical roots, but search conversion remains to be validated; Kuaishou's Kling AI has high elasticity, but competition and profitability sustainability are less certain.

2️⃣ Profit quality is prioritized over revenue growth. During the AI investment phase, revenue growth can be artificially inflated by computing power leasing, low-price customer acquisition, or internal traffic diversion, which may not reflect true demand. More critical metrics include gross profit margin (GPM), cash flow, customer retention, and output per unit of computing power, as these indicate whether the business model can self-sustain.

3️⃣ For long-term ceilings, AI Cloud is the top choice. Cloud computing generates revenue from computing power, model platforms, and enterprise applications simultaneously, benefiting from economies of scale in resource scheduling and procurement. AI content tools monetize fastest but face intense competition; AI search can reconstruct traffic and ad ecosystems with a high ceiling, though commercialization carries the risk of cannibalizing existing revenue streams.

$BABA-W(09988.HK)$KUAISHOU-W(01024.HK)$BIDU-SW(09888.HK)

4️⃣ For short-term elasticity, I choose Kuaishou; for long-term certainty, I choose Alibaba. If the market chases AI applications and valuation re-rating, independent financing for Kling AI, along with user and revenue progress, could serve as catalysts, potentially offering the highest stock price elasticity. Alibaba benefits from AI Cloud re-rating but has a larger base; Baidu holds multiple options across 'AI Search + AI Cloud + Autonomous Driving' and may also surge sharply when catalysts emerge.