BABA: AI Rally Sends Stock to ‘Perfect 10’ Rating — But $433M Ant Group Settlement Still Weighs

Court: S.D. New York

Case: 1:20-cv-09568

Alibaba BABA has earned a “Perfect 10” Smart Score from TipRanks, signaling top-tier bullish indicators across fundamentals, technicals, and analyst sentiment. The stock has soared over 50% in the past year, driven by aggressive investment in artificial intelligence, new product rollouts like smart glasses, and rapid cloud expansion. Yet, a $433.5 million legal settlement tied to Ant Group’s failed IPO continues to loom over its recovery.

Key Rally Highlights

• TipRanks assigns BABA a “Perfect 10” Smart Score — its highest rating.
• Stock up more than 50% YoY, beating the S&P 500’s 20% gain.
• Qwen3-Coder AI model launched, strengthening Alibaba’s open-source LLM suite.
• $53B investment over 3 years into AI chips, cloud infrastructure, and computing power.
• Unveiled Quark AI Glasses — debut consumer hardware running on Qwen AI.
• Cloud expansion in Southeast Asia: new data centers in Malaysia, Philippines.
• AI Global Center launched in Singapore, targeting 5,000 companies and 100,000 developers.

Timeline Overview

• November 5, 2019: Regulators warned Alibaba on antitrust and financial compliance.
• November 2, 2020: Ant Group summoned by regulators.
• November 3, 2020: Ant’s IPO suspended; BABA dropped 8%.
• December 23–24, 2020: Antitrust probe launched; BABA fell 13% in one day.
• April 22, 2022: Investors filed lawsuit over undisclosed regulatory risks.
• Settlement finalized at $433.5 million.

Allegations Include

• Misleading investors on Ant Group’s regulatory risks prior to IPO.
• Downplaying compliance failures in consumer lending.
• Withholding material risks related to antitrust and financial scrutiny.
• Failing to update investors on the potential collapse of the IPO.

Investor Update

The $433.5 million settlement resolved shareholder claims that Alibaba obscured the severity of regulatory action facing its fintech affiliate, Ant Group. While BABA has regained momentum via AI and global expansion, reputational overhang from the collapsed IPO continues to influence investor confidence and regulatory perception.

You can check more information about it and file for a payout HERE.