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Core News Facts
Many American tech stocks have soared recently, driven by the expanding artificial intelligence (AI) market, pushing the S&P 500’s price-to-earnings ratio to 30 times—well above the average of 20 over the past two decades. This surge has led some analysts to predict a potential market correction as tech stocks may be overvalued.
Alibaba Group (NYSE: BABA), a leading Chinese e-commerce and cloud infrastructure firm, has seen its stock appreciate about 80% in 2023 but remains approximately 50% below its all-time high. Analysts expect the company’s revenue to grow at a compound annual growth rate of 8%, with earnings per share projected to increase by 12% between fiscal 2025 and 2028. If market conditions improve, particularly trade relations between the U.S. and China, Alibaba’s stock could rise by roughly 73% over the next year.
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