To The Moon

Alibaba (BABA) June-quarter 2026 revenue rose 9% YoY to ~RMB 269B. Cloud/AI external revenue accelerated to +45%, with AI-related products delivering a 12th consecutive quarter of triple-digit growth. Core e-commerce (customer management revenue) remains soft amid competition and macro pressures; overall profitability was impacted by heavy AI investments and lower investment gains. New models (Qwen series) and agentic tools are advancing. Shares have recovered from 52-week lows but remain volatile (recently around the $120 area). Valuation is inexpensive relative to AI/cloud growth potential; many analysts maintain Buy ratings with meaningful upside targets. Future potential: Improving via AI/cloud transformation, which is increasingly offsetting e-commerce headwinds. Success depends on su

Alibaba (BABA) June-quarter 2026 revenue rose 9% YoY to ~RMB 269B. Cloud/AI external revenue accelerated to +45%, with AI-related products delivering a 12th consecutive quarter of triple-digit growth. Core e-commerce (customer management revenue) remains soft amid competition and macro pressures; overall profitability was impacted by heavy AI investments and lower investment gains. New models (Qwen series) and agentic tools are advancing. Shares have recovered from 52-week lows but remain volatile (recently around the $120 area). Valuation is inexpensive relative to AI/cloud growth potential; many analysts maintain Buy ratings with meaningful upside targets. Future potential: Improving via AI/cloud transformation, which is increasingly offsetting e-commerce headwinds. Success depends on su

Stocks / themes to watch this week Nvidia and AI complex (NVDA, related semis, data-center names, software such as CRM, CRWD, SNPS). Earnings + guidance will set the tone for the AI trade. Energy / oil-related names given geopolitical premium. Healthcare / biotech (follow-through on Moderna momentum and broader oncology interest). Select retailers and consumer discretionary for confirmation of demand resilience. China/HK consumer & internet (PDD reports Monday; Shein IPO flow; any policy signals). Bond-sensitive sectors (utilities, REITs, growth stocks) for yield reaction. Markets are in a volatile, range-bound environment with elevated event risk. I prefer a selective, risk-managed approach rather than broad directional bets: Core AI exposure with hedges — Maintain or selectively add

Main drivers worth noting: Bond market & yields: US Treasury announced larger long-end buybacks (described by some as a tactical “Operation Twist”-style move). This provided temporary relief but yields remain elevated, keeping discount-rate pressure on equities, especially growth/tech. Geopolitics / oil: Ongoing US-Iran tensions (including planned economic measures to isolate Iran) continue to support oil. Brent recently traded near $94 and WTI near $87, with weekly gains of ~5–6%. Higher energy costs feed inflation concerns. AI / semis: Nvidia (NVDA) reports Wednesday (26 Aug). This remains the key event of the week. Consensus is roughly $92bn revenue (vs company guide ~$91bn ±2%); some banks (Citi, Jefferies) see potential for a larger beat on Blackwell/Rubin demand and networking. H

**The market is largely unimpressed because the doubled long-end buybacks are a modest liquidity/tactical measure that does little to address the core drivers of higher long-term yields.** On 19 August 2026, the US Treasury (under Secretary Scott Bessent) announced it would at least double the size of its liquidity-support buyback operations for 10- to 20-year and 20- to 30-year nominal Treasuries—from $2 billion to at least $4 billion per operation. This applies from 9 September through 4 November 2026 and adds roughly $14 billion of capacity in the current quarter (on top of the previously planned total). The move followed a sharp selloff that pushed the 30-year yield to its highest level since 2007, amid fiscal concerns (public debt near/above $40 trillion), geopolitical risks, and weak

**The market is largely unimpressed because the doubled long-end buybacks are a modest liquidity/tactical measure that does little to address the core drivers of higher long-term yields.** On 19 August 2026, the US Treasury (under Secretary Scott Bessent) announced it would at least double the size of its liquidity-support buyback operations for 10- to 20-year and 20- to 30-year nominal Treasuries—from $2 billion to at least $4 billion per operation. This applies from 9 September through 4 November 2026 and adds roughly $14 billion of capacity in the current quarter (on top of the previously planned total). The move followed a sharp selloff that pushed the 30-year yield to its highest level since 2007, amid fiscal concerns (public debt near/above $40 trillion), geopolitical risks, and weak

The market is largely unimpressed because the doubled long-end buybacks are a modest liquidity/tactical measure that does little to address the core drivers of higher long-term yields. On 19 August 2026, the US Treasury (under Secretary Scott Bessent) announced it would at least double the size of its liquidity-support buyback operations for 10- to 20-year and 20- to 30-year nominal Treasuries—from $2 billion to at least $4 billion per operation. This applies from 9 September through 4 November 2026 and adds roughly $14 billion of capacity in the current quarter (on top of the previously planned total). The move followed a sharp selloff that pushed the 30-year yield to its highest level since 2007, amid fiscal concerns (public debt near/above $40 trillion), geopolitical risks, and weak dem

Micron (MU), SK Hynix, NVIDIA (NVDA), AMD, Alibaba (BABA), and Xiaomi form a clear AI-driven ecosystem: memory suppliers power the compute leaders, while Chinese tech firms leverage AI for cloud, devices, and EVs.  As of late August 2026, AI demand remains the dominant theme, with memory shortages driving exceptional profitability for suppliers and sustained growth for GPU leaders. Chinese names show mixed results as AI investments offset core-business pressures. Micron Technology (MU) Recent Q3 FY2026 results (ended May 2026) were exceptional: revenue ~$41.5B (+346% YoY), adjusted EPS ~$25.11 (well above estimates), and gross margins ~84.6%. Guidance for Q4 points to ~$50B revenue and ~$31 EPS, with margins near 86%. Long-term supply agreements (including take-or-pay contracts and de

Alibaba (BABA) June-quarter 2026 revenue rose 9% YoY to ~RMB 269B. Cloud/AI external revenue accelerated to +45%, with AI-related products delivering a 12th consecutive quarter of triple-digit growth. Core e-commerce (customer management revenue) remains soft amid competition and macro pressures; overall profitability was impacted by heavy AI investments and lower investment gains. New models (Qwen series) and agentic tools are advancing. Shares have recovered from 52-week lows but remain volatile (recently around the $120 area). Valuation is inexpensive relative to AI/cloud growth potential; many analysts maintain Buy ratings with meaningful upside targets. Future potential: Improving via AI/cloud transformation, which is increasingly offsetting e-commerce headwinds. Success depends on su

Alibaba (BABA) June-quarter 2026 revenue rose 9% YoY to ~RMB 269B. Cloud/AI external revenue accelerated to +45%, with AI-related products delivering a 12th consecutive quarter of triple-digit growth. Core e-commerce (customer management revenue) remains soft amid competition and macro pressures; overall profitability was impacted by heavy AI investments and lower investment gains. New models (Qwen series) and agentic tools are advancing. Shares have recovered from 52-week lows but remain volatile (recently around the $120 area). Valuation is inexpensive relative to AI/cloud growth potential; many analysts maintain Buy ratings with meaningful upside targets. Future potential: Improving via AI/cloud transformation, which is increasingly offsetting e-commerce headwinds. Success depends on su