Cathie Wood Bought Alibaba Stock -- What It Means for Investors

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Lawrence Nga, The Motley FoolSun, October 12, 2025 at 7:37 PM GMT+2 6 min readCathie Wood is betting on Alibaba's future in AI.Institutional investor confidence in China's tech sector is recovering.Alibaba's turnaround could create asymmetric upside.10 stocks we like better than Alibaba Group ›Cathie Wood has built her reputation by making bold, forward-looking bets. Her latest move at Ark Invest -- buying into Alibaba (NYSE: BABA) for the first time in four years -- has reignited U.S. investors' interest in one of China's most followed companies. The purchase itself may have been relatively small, but it carries significant symbolic weight.Here's what happened, what it signals, and how investors should think about it.Image source: Getty Images.In late September, Wood's Ark Invest bought about $16.3 million worth of Alibaba shares across two of its exchange-traded funds (ETFs) -- roughly $8.18 million for the ARK Fintech Innovation ETF (NYSEMKT: ARKF) and $8.1 million for the ARK Next Generation Internet ETF (NYSEMKT: ARKW), according to a report by SCMP.It was Ark's first Alibaba investment since 2021, when global investors fled Chinese tech stocks due to regulatory pressure and geopolitical uncertainty. The size of the purchase was small relative to Ark's total of over $6.7 billion in assets under management, but the timing is crucial.This move, after years during which Ark stayed away from the stock, signals a belief that the company's long-term fundamentals and operating environment have improved. Unsurprisingly, investors responded positively to news of the purchase. Following the disclosure, Alibaba's Hong Kong-listed shares surged nearly 9% to their highest level in four years. The reaction showed that investors closely track Ark's trades -- and that market sentiment toward Alibaba has begun to shift.Wood's decision to add Alibaba back into her portfolio suggests that the worst is likely behind the tech company, and that the fund manager is now focusing on its future.First, Ark likely sees Alibaba as an artificial intelligence (AI) and cloud growth story. Alibaba's latest quarterly report showed cloud revenue up 26% year over year to 33.4 billion yuan ($4.7 billion), a growth rate that significantly outpaced the group's 10% total revenue growth. It has also reported triple-digit percentage revenue growth for its AI-related products for eight consecutive quarters, and AI now accounts for more than 20% of Alibaba Cloud's external sales.This growth reflects more than a rebound -- it shows a structural shift toward higher-margin, AI-driven businesses. With its Tongyi Qianwen large language model and AI-powered enterprise tools, Alibaba has evolved from a traditional cloud infrastructure provider into an AI platform.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,552.51 -182.60 (-2.71%)Dow 3045,479.60 -878.80 (-1.90%)Nasdaq22,204.43 -820.17 (-3.56%)Russell 20002,394.60 -74.26 (-3.01%)VIX21.66 +5.23 (+31.83%)Gold4,000.40 +27.80 (+0.70%)PortfolioSign in to access your portfolioSign inTop gainersPTGX Protagonist Therapeutics, Inc. 87.00 +19.96 (+29.77%)APLD Applied Digital Corporation 33.99 +4.70 (+16.05%)NAMS NewAmsterdam Pharma Company N.V. 37.05 +4.04 (+12.26%)FRMI Fermi Inc. 29.08 +2.31 (+8.63%)MP MP Materials Corp. 78.34 +6.05 (+8.37%)Top losersVG Venture Global, Inc. 9.45 -3.13 (-24.88%)DGNX Diginex Limited 24.93 -6.46 (-20.58%)CORT Corcept Therapeutics Incorporated 73.96 -14.40 (-16.30%)WRD WeRide Inc. 10.17 -1.80 (-15.04%)AMBA Ambarella, Inc. 72.88 -11.40 (-13.53%)Most activeNVDA NVIDIA Corporation 183.05 -9.46 (-4.91%)BBAI BigBear.ai Holdings, Inc. 7.22 -0.27 (-3.60%)BITF Bitfarms Ltd. 4.2000 +0.0300 (+0.72%)INTC Intel Corporation 36.33 -1.47 (-3.89%)PLUG Plug Power Inc. 3.4200 -0.3600 (-9.52%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersETH-USD Ethereum USD 4,140.31 +315.21 (+8.24%)ADA-USD Cardano USD 0.69 +0.04 (+5.49%)BTC-USD Bitcoin USD 114,227.41 +2,163.23 (+1.93%)NVX NOVONIX Limited 2.9400 +0.7750 (+35.80%)BNB-USD BNB USD 1,299.90 +122.48 (+10.40%)Top economic events