The emergence of China’s DeepSeek, which burst out of obscurity and into the center of the tech universe is changing the landscape of AI world significantly. And the release of DeepSeek's low-cost AI model has prompted global investors to reassess the valuation of Chinese assets and buy Chinese stocks, in which Alibaba is hopefully the most important beneficiary, which has become the transformational bellwehter for AI.
Market predictions for Alibaba's valuation over the past decade have been anchored in the growth of its e-commerce business. The regulatory crackdown on tech giants by Chinese authorities, coupled with the sluggish consumption in the post pandemic, has dampened investors' interest and enthusiasm around Alibaba.
Tesla has been on a roller coaster ride since Musk went to Washington, D.C., to take on a major role in the second Trump White House, which of heading Trump’s advisory DOGE, which is engaged in a broad, controversial effort to reduce federal government spending and slash employee headcount at dozens of agencies.
The bearish sentiment is pervading the Wall Street right now, when the S&P 500 follows the Nasdaq into correction territory. After Thursday’s sell-off, the S&P 500 has joined the Nasdaq Composite in correction territory, which is typically taken to mean a decline of 10% or more from a recent high.
Since the beginning of 2025, global macroeconomic environment is way more complicated. US economic data is flashing red signal at this time around, dispite keeping 2.3% growth rate and 4.1% unempolyment rate for Q4.
