TLDR
- Alibaba’s Quark AI Glasses priced at $660 (3,999 yuan after discounts), pre-sales launch October 24 with December shipments
- New AI Chat Assistant chatbot powered by Qwen3 models debuts within Quark app, competing with ChatGPT and DeepSeek
- Glasses feature hands-free calling, music streaming, and real-time translation, competing with Meta Ray-Ban and Xiaomi
- BABA shares gained 72.1% over past year and 95.2% year-to-date despite five-year decline of 43.3%
- DCF analysis shows 12% overvaluation at $165.86, but P/E ratio of 17.8x suggests undervaluation versus 29.0x Fair Ratio
Alibaba unveiled pricing for its first smart glasses product on Thursday. The Quark AI Glasses will retail for 4,699 Chinese yuan, approximately $660 before discounts.
The final price drops to 3,999 yuan after promotional offers. Pre-orders open October 24 through Tmall, with product delivery starting in December.
This marks Alibaba’s debut in the AI wearables market. The glasses compete with Meta’s Ray-Ban smart glasses partnership and Xiaomi’s recently launched AI eyewear.
The Qwen large language model powers the device. Key features include hands-free calling, music streaming, and real-time language translation capabilities.
Alibaba simultaneously launched AI Chat Assistant within its Quark app. The new chatbot mode runs on the company’s latest Qwen3 models.
Users can switch between text and voice conversations in a unified interface. The assistant offers photo editing, image-based problem solving, and AI writing functionality.
The chatbot enters a competitive landscape dominated by OpenAI’s ChatGPT and DeepSeek. Alibaba positions it as an all-in-one solution combining search and conversation.
Stock Performance Shows Strong Recovery
BABA shares climbed nearly 1.7% in Hong Kong trading following the product announcements. U.S.-listed shares also rose in premarket activity.
The stock delivered a 72.1% return over the past twelve months. Year-to-date performance stands at an even stronger 95.2%.
These gains come after a challenging longer period. Five-year returns remain negative at -43.3%.
Alibaba Group Holding Limited, BABA
The recent rally reflects improved regulatory sentiment in China. Investor confidence in Alibaba’s core e-commerce and cloud computing operations has strengthened.
Speculation around potential asset spin-offs has added to the positive momentum. These factors have helped drive the stock’s impressive turnaround.
Valuation Analysis Reveals Split Signals
A discounted cash flow analysis places Alibaba’s intrinsic value at $148.14 per share. At the current trading price of $165.86, shares appear 12% overvalued using this method.
The P/E ratio presents a contrasting view. BABA trades at 17.8x earnings, below the industry average of 21.6x.
The peer group average sits even higher at 43.9x. A customized Fair Ratio of 29.0x, accounting for growth prospects and risk factors, suggests undervaluation.
Alibaba’s valuation score stands at 3 out of 6. Analyst projections show free cash flow at CN¥83.1 billion currently, with estimates reaching CN¥128.98 billion by 2028.
Bull case scenarios driven by AI and cloud investments suggest fair value near $193 per share. Bear case analyses citing trade tensions and regulatory concerns place value around $107.
The company first announced the Quark AI Glasses in July. These consumer-focused AI products complement Alibaba’s business-oriented cloud services strategy.
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